Intercontinental Hotels Group (NYSE:IHG) vs. Oriental Land (OTCMKTS:OLCLY) Critical Survey

Oriental Land (OTCMKTS:OLCLY) and Intercontinental Hotels Group (NYSE:IHG) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Dividends

Oriental Land pays an annual dividend of $0.05 per share and has a dividend yield of 0.3%. Intercontinental Hotels Group pays an annual dividend of $1.13 per share and has a dividend yield of 0.8%. Oriental Land pays out 9.6% of its earnings in the form of a dividend.

Profitability

This table compares Oriental Land and Intercontinental Hotels Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oriental Land	18.10%	12.44%	8.70%
Intercontinental Hotels Group	N/A	N/A	N/A

Risk and Volatility

Oriental Land has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Intercontinental Hotels Group has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Oriental Land and Intercontinental Hotels Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oriental Land	0	1	0	0	2.00
Intercontinental Hotels Group	1	2	3	1	2.57

Valuation and Earnings

This table compares Oriental Land and Intercontinental Hotels Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oriental Land	$4.46 billion	6.44	$819.46 million	$0.52	33.69
Intercontinental Hotels Group	$5.19 billion	4.22	$628.00 million	N/A	N/A

Oriental Land has higher earnings, but lower revenue than Intercontinental Hotels Group.

Insider and Institutional Ownership

15.1% of Intercontinental Hotels Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Intercontinental Hotels Group beats Oriental Land on 8 of the 13 factors compared between the two stocks.

About Oriental Land

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.

About Intercontinental Hotels Group

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, voco, HUALUXE, Crowne Plaza, Iberostar Beachfront Resorts, EVEN, Holiday Inn Express, Holiday Inn, Garner, avid hotels, Atwell Suites, Staybridge Suites, Iberostar Beachfront Resorts, Holiday Inn Club Vacations, and Candlewood Suites brand names. It also provides IHG Rewards loyalty program. InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Windsor, the United Kingdom.