Marriott Vacations Worldwide (NYSE:VAC) and Novation Companies (OTCMKTS:NOVC) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
79.3% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 0.6% of Novation Companies shares are held by institutional investors. 3.5% of Marriott Vacations Worldwide shares are held by company insiders. Comparatively, 17.3% of Novation Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Marriott Vacations Worldwide and Novation Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marriott Vacations Worldwide||4.04%||10.28%||3.88%|
Valuation & Earnings
This table compares Marriott Vacations Worldwide and Novation Companies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marriott Vacations Worldwide||$1.95 billion||1.75||$226.77 million||$5.78||12.56|
|Novation Companies||$27.96 million||0.07||-$10.86 million||N/A||N/A|
Marriott Vacations Worldwide has higher revenue and earnings than Novation Companies.
This is a summary of current ratings and price targets for Marriott Vacations Worldwide and Novation Companies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marriott Vacations Worldwide||0||2||7||0||2.78|
Marriott Vacations Worldwide presently has a consensus target price of $143.23, suggesting a potential upside of 97.37%. Given Marriott Vacations Worldwide’s higher probable upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Novation Companies.
Marriott Vacations Worldwide pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Novation Companies does not pay a dividend. Marriott Vacations Worldwide pays out 27.7% of its earnings in the form of a dividend.
Risk and Volatility
Marriott Vacations Worldwide has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Novation Companies has a beta of -1.2, meaning that its stock price is 220% less volatile than the S&P 500.
Marriott Vacations Worldwide beats Novation Companies on 11 of the 13 factors compared between the two stocks.
Marriott Vacations Worldwide Company Profile
Marriott Vacations Worldwide Corporation develops, markets, sells, and manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, and Marriott Vacation Club Pulse brands. It operates through three segments: North America, Asia Pacific, and Europe. The company also develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, it sells two points-based vacation ownership products through Marriott Vacation Club points-based ownership programs focused in North America and the Asia Pacific; and weeks-based vacation ownership products. Further, it is involved in financing consumer purchases of vacation ownership products; and renting vacation ownership inventory. Additionally, the company provides on-site management and services, such as daily housekeeping services, valet, in-residence dining, and access to fitness facilities, as well as spa and sports facilities for Ritz-Carlton branded properties. As of December 30, 2017, Marriott Vacations Worldwide Corporation operated 65 properties with 13,654 vacation ownership villas and approximately 400,000 owners in the United States, and 9 other countries and territories. It sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. Marriott Vacations Worldwide Corporation is headquartered in Orlando, Florida.
Novation Companies Company Profile
Novation Companies, Inc., through its subsidiary, Healthcare Staffing, Inc., provides outsourced health care staffing and related services primarily to Community Service Boards in Georgia. It also owns a portfolio of mortgage securities. The company was formerly known as NovaStar Financial, Inc. and changed its name to Novation Companies, Inc. in May 2012. Novation Companies, Inc. was founded in 1996 and is based in Kansas City, Missouri.
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