Vail Resorts (NYSE:MTN) & Marriott International (NASDAQ:MAR) Head-To-Head Contrast

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

Dividends

Marriott International pays an annual dividend of $2.92 per share and has a dividend yield of 0.8%. Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.4%. Marriott International pays out 30.3% of its earnings in the form of a dividend. 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 has increased its dividend for 3 consecutive years and Vail Resorts has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marriott International and Vail Resorts, as reported by MarketBeat.

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

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

Profitability

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

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

Earnings & Valuation

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

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

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.

Risk and Volatility

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

Institutional and Insider Ownership

70.7% of Marriott International shares are owned by institutional investors. Comparatively, 94.9% of Vail Resorts shares are owned by institutional investors. 11.4% of Marriott International shares are owned by insiders. Comparatively, 1.2% of Vail Resorts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

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

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.

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.