Extended Stay America (NYSE: STAY) and Wyndham Worldwide (NYSE:WYN) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.
This table compares Extended Stay America and Wyndham Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extended Stay America||5.47%||15.18%||4.97%|
Earnings and Valuation
This table compares Extended Stay America and Wyndham Worldwide’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Extended Stay America||$1.28 billion||2.96||$78.84 million||$1.00||20.01|
|Wyndham Worldwide||$5.08 billion||2.12||$871.00 million||$5.50||19.63|
Wyndham Worldwide has higher revenue and earnings than Extended Stay America. Wyndham Worldwide is trading at a lower price-to-earnings ratio than Extended Stay America, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
96.8% of Extended Stay America shares are owned by institutional investors. Comparatively, 90.1% of Wyndham Worldwide shares are owned by institutional investors. 0.6% of Extended Stay America shares are owned by insiders. Comparatively, 2.2% of Wyndham Worldwide shares are owned by 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.
Extended Stay America pays an annual dividend of $0.88 per share and has a dividend yield of 4.4%. Wyndham Worldwide pays an annual dividend of $2.64 per share and has a dividend yield of 2.4%. Extended Stay America pays out 88.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wyndham Worldwide pays out 48.0% of its earnings in the form of a dividend. Extended Stay America has increased its dividend for 3 consecutive years and Wyndham Worldwide has increased its dividend for 8 consecutive years.
This is a breakdown of current ratings and recommmendations for Extended Stay America and Wyndham Worldwide, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extended Stay America||0||1||7||0||2.88|
Extended Stay America currently has a consensus price target of $21.44, suggesting a potential upside of 7.13%. Wyndham Worldwide has a consensus price target of $134.86, suggesting a potential upside of 24.94%. Given Wyndham Worldwide’s higher probable upside, analysts plainly believe Wyndham Worldwide is more favorable than Extended Stay America.
Volatility & Risk
Extended Stay America has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Wyndham Worldwide has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Wyndham Worldwide beats Extended Stay America on 11 of the 17 factors compared between the two stocks.
About Extended Stay America
Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to unaffiliated third parties. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.
About Wyndham Worldwide
Wyndham Worldwide Corporation provides hospitality services and products to individual and business customers worldwide. It operates through three segments: Hotel Group, Destination Network, and Vacation Ownership. The Hotel Group segment primarily franchises hotels in the upscale, upper midscale, midscale, economy, and extended stay segments, as well as provides property management services for full-service and select limited-service hotels. This segment operates approximately 8,422 franchised hotels and 728,000 hotel rooms. The Destination Network segment provides vacation exchange services and products to owners of vacation ownership interests (VOIs); and manages and markets vacation rental properties primarily on behalf of independent owners. This segment operates vacation exchange network with approximately 3.9 million members. The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers; and provides consumer financing in connection with the sale of VOIs, as well as offers property management services at resorts. The company offers its hospitality services and products under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club, and WorldMark by Wyndham. Wyndham Worldwide Corporation was founded in 1990 and is headquartered in Parsippany, New Jersey.
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