Diamond Resorts International (NASDAQ: DRII) and Playa Hotels & Resorts N.V. (NASDAQ:PLYA) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitabiliy and analyst recommendations.

Insider and Institutional Ownership

69.4% of Playa Hotels & Resorts N.V. shares are held by institutional investors. 2.7% of Playa Hotels & Resorts N.V. shares are held 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.

Analyst Ratings

This is a summary of current ratings and target prices for Diamond Resorts International and Playa Hotels & Resorts N.V., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Diamond Resorts International 0 0 0 0 N/A
Playa Hotels & Resorts N.V. 0 1 4 0 2.80

Playa Hotels & Resorts N.V. has a consensus price target of $13.31, suggesting a potential upside of 14.07%. Given Playa Hotels & Resorts N.V.’s higher probable upside, analysts plainly believe Playa Hotels & Resorts N.V. is more favorable than Diamond Resorts International.

Valuation and Earnings

This table compares Diamond Resorts International and Playa Hotels & Resorts N.V.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Diamond Resorts International N/A N/A N/A N/A N/A
Playa Hotels & Resorts N.V. $535.60 million 2.25 $140.28 million N/A N/A

Playa Hotels & Resorts N.V. has higher revenue and earnings than Diamond Resorts International.

Profitability

This table compares Diamond Resorts International and Playa Hotels & Resorts N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Diamond Resorts International 10.37% 30.25% 4.88%
Playa Hotels & Resorts N.V. N/A N/A N/A

Summary

Playa Hotels & Resorts N.V. beats Diamond Resorts International on 5 of the 8 factors compared between the two stocks.

Diamond Resorts International Company Profile

Diamond Resorts International, Inc. (DRII) is engaged in the hospitality and vacation ownership industry. The Company operates through two segments: hospitality and management services, and Vacation Interest Sales and Financing. Its hospitality and management services segment manages a network of resort properties and provides services to a member base across the world. Its Vacation Interest sales and financing segment manages over 110 resort properties, as well the Diamond Collections, each of which holds ownership interests in a group of resort properties, (including its managed resorts). The Company sells vacation ownership interests (VOIs) through presentations, which the Company refers to as tours, at its over 60 sales centers, all of which are located at its managed resorts. It has a network of over 380 vacation destinations located in approximately 30 countries throughout the continental United States, Hawaii, Canada, Mexico, Europe, Asia, Australia, New Zealand and Africa.

Playa Hotels & Resorts N.V. Company Profile

Playa Hotels & Resorts NV is based in the Netherlands and operates hotels and resorts. The Company owns, operates and develops all-inclusive resorts in beachfront locations in vacation destinations in Mexico and the Caribbean. It owns a portfolio consisting of more than 10 resorts located in Mexico, the Dominican Republic and Jamaica. The Company owns and manages Hyatt Zilara and Hyatt Ziva Cancun, Hyatt Ziva and Hyatt Zilara Rose Hall Jamaica, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. It also owns and operates three resorts under Playa’s brands, THE Royal and Gran Resorts, as well as five resorts in Mexico and the Dominican Republic that are managed by a third party. The Company also offers and organizes weddings and other events in their hotels.

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