Head to Head Review: Marriott International (NASDAQ:MAR) vs. Vail Resorts (NYSE:MTN)

Vail Resorts (NYSE:MTN) and Marriott International (NASDAQ:MAR) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Dividends

Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.4%. Marriott International pays an annual dividend of $2.92 per share and has a dividend yield of 0.8%. Vail Resorts pays out 214.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marriott International pays out 30.3% of its earnings in the form of a dividend. Vail Resorts has increased its dividend for 3 consecutive years and Marriott International has increased its dividend for 3 consecutive years.

Profitability

This table compares Vail Resorts and Marriott International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	5.20%	21.82%	2.60%
Marriott International	9.62%	-75.81%	10.56%

Institutional and Insider Ownership

94.9% of Vail Resorts shares are owned by institutional investors. Comparatively, 70.7% of Marriott International shares are owned by institutional investors. 1.2% of Vail Resorts shares are owned by company insiders. Comparatively, 11.4% of Marriott International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Vail Resorts and Marriott International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	3	7	4	0	2.07
Marriott International	0	10	10	2	2.64

Vail Resorts presently has a consensus price target of $145.25, suggesting a potential upside of 4.41%. Marriott International has a consensus price target of $385.88, suggesting a potential upside of 7.78%. Given Marriott International’s stronger consensus rating and higher probable upside, analysts plainly believe Marriott International is more favorable than Vail Resorts.

Risk & Volatility

Vail Resorts has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Valuation and Earnings

This table compares Vail Resorts and Marriott International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.84 billion	1.75	$280.00 million	$4.14	33.60
Marriott International	$26.90 billion	3.47	$2.60 billion	$9.65	37.10

Marriott International has higher revenue and earnings than Vail Resorts. Vail Resorts is trading at a lower price-to-earnings ratio than Marriott International, indicating that it is currently the more affordable of the two stocks.

Summary

Marriott International beats Vail Resorts on 14 of the 17 factors compared between the two stocks.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

About Marriott International

Marriott International, Inc. engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St. Regis Longboat Key brand names, as well as operates residences, timeshares, and yachts. The company was founded in 1927 and is headquartered in Bethesda, Maryland.