Analyzing Peak Resorts (SKIS) and Extended Stay America (STAY)

Peak Resorts (NASDAQ: SKIS) and Extended Stay America (NYSE:STAY) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Valuation and Earnings

This table compares Peak Resorts and Extended Stay America’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peak Resorts $123.25 million 0.58 $1.24 million $0.03 171.67
Extended Stay America $1.28 billion 3.19 $78.84 million $1.00 21.52

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Peak Resorts and Extended Stay America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peak Resorts 0 1 5 0 2.83
Extended Stay America 0 0 9 0 3.00

Peak Resorts currently has a consensus target price of $6.17, indicating a potential upside of 19.74%. Extended Stay America has a consensus target price of $22.17, indicating a potential upside of 3.00%. Given Peak Resorts’ higher probable upside, equities research analysts plainly believe Peak Resorts is more favorable than Extended Stay America.

Volatility & Risk

Peak Resorts has a beta of 1.2, meaning that its stock price is 20% more volatile than the S&P 500. Comparatively, Extended Stay America has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Dividends

Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 5.4%. Extended Stay America pays an annual dividend of $0.88 per share and has a dividend yield of 4.1%. Peak Resorts pays out 933.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Extended Stay America has raised its dividend for 3 consecutive years.

Profitability

This table compares Peak Resorts and Extended Stay America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peak Resorts -0.13% 1.37% 0.28%
Extended Stay America 5.47% 15.18% 4.97%

Insider & Institutional Ownership

45.6% of Peak Resorts shares are owned by institutional investors. Comparatively, 96.7% of Extended Stay America shares are owned by institutional investors. 16.5% of Peak Resorts shares are owned by insiders. Comparatively, 0.7% of Extended Stay America shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Extended Stay America beats Peak Resorts on 12 of the 17 factors compared between the two stocks.

Peak Resorts Company Profile

Peak Resorts, Inc., through its subsidiaries, owns, operates, and leases day ski and overnight drive ski resorts. The company offers various activities, services, and amenities, including skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction and mountain biking, zip tours, and other summer activities. Its ski resort operations consist of snow skiing, snowboarding, and snow sports areas in Wildwood and Weston, Missouri; Bellefontaine and Cleveland, Ohio; Paoli, Indiana; Blakeslee and Lake Harmony, Pennsylvania; Bartlett, Bennington, and Pinkham Notch, New Hampshire; West Dover, Vermont; Hunter, New York; and an 18 hole golf course in West Dover, Vermont. The company also manages hotels in Bartlett, New Hampshire; West Dover, Vermont; and Hunter, New York. It operates 14 ski resorts. Peak Resorts, Inc. was founded in 1997 and is based in Wildwood, Missouri.

Extended Stay America Company Profile

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.

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