Head-To-Head Analysis: Travel + Leisure (NYSE:TNL) vs. United Parks & Resorts (NYSE:PRKS)

United Parks & Resorts (NYSE:PRKS) and Travel + Leisure (NYSE:TNL) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for United Parks & Resorts and Travel + Leisure, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Parks & Resorts	2	7	4	0	2.15
Travel + Leisure	0	2	8	1	2.91

United Parks & Resorts currently has a consensus price target of $50.82, indicating a potential upside of 35.60%. Travel + Leisure has a consensus price target of $73.56, indicating a potential upside of 5.35%. Given United Parks & Resorts’ higher probable upside, research analysts clearly believe United Parks & Resorts is more favorable than Travel + Leisure.

Insider & Institutional Ownership

87.5% of Travel + Leisure shares are owned by institutional investors. 1.2% of United Parks & Resorts shares are owned by insiders. Comparatively, 3.8% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares United Parks & Resorts and Travel + Leisure”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Parks & Resorts	$1.73 billion	1.18	$227.50 million	$3.27	11.46
Travel + Leisure	$3.86 billion	1.16	$411.00 million	$6.08	11.48

Travel + Leisure has higher revenue and earnings than United Parks & Resorts. United Parks & Resorts is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

United Parks & Resorts has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares United Parks & Resorts and Travel + Leisure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
United Parks & Resorts	10.83%	-44.47%	6.88%
Travel + Leisure	10.36%	-49.06%	6.24%

Summary

Travel + Leisure beats United Parks & Resorts on 10 of the 15 factors compared between the two stocks.

About United Parks & Resorts

United Parks & Resorts, Inc. is a holding company, which engages in the ownership and operation of theme parks. Its portfolio includes SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Sesame Place, and Sea Rescue. The company was founded in 1959 and is headquartered in Orlando, FL.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.