Peak Resorts (NASDAQ:SKIS) and Huazhu Group (NASDAQ:HTHT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Earnings & Valuation

This table compares Peak Resorts and Huazhu Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peak Resorts $131.66 million 0.54 $1.35 million $0.07 66.57
Huazhu Group $1.26 billion 8.21 $190.15 million $0.65 54.43

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

Insider and Institutional Ownership

42.7% of Peak Resorts shares are owned by institutional investors. Comparatively, 43.1% of Huazhu Group shares are owned by institutional investors. 13.9% of Peak Resorts shares are owned by insiders. Comparatively, 49.4% of Huazhu Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Peak Resorts pays an annual dividend of $0.28 per share and has a dividend yield of 6.0%. Huazhu Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Peak Resorts pays out 400.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Huazhu Group pays out 49.2% of its earnings in the form of a dividend.

Risk and Volatility

Peak Resorts has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Huazhu Group has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Peak Resorts and Huazhu Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peak Resorts 0 0 2 0 3.00
Huazhu Group 1 1 6 0 2.63

Peak Resorts currently has a consensus target price of $6.50, indicating a potential upside of 39.48%. Huazhu Group has a consensus target price of $42.92, indicating a potential upside of 21.30%. Given Peak Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Peak Resorts is more favorable than Huazhu Group.

Profitability

This table compares Peak Resorts and Huazhu Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peak Resorts -3.02% -4.26% -0.82%
Huazhu Group 14.00% 24.86% 8.07%

Summary

Huazhu Group beats Peak Resorts on 12 of the 16 factors compared between the two stocks.

About Peak Resorts

Peak Resorts, Inc., through its subsidiaries, owns, operates, and leases day and overnight drive ski resorts in the United States. Its resorts activities and amenities include skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction, zip lines, mountain coasters, mountain biking, hiking, and other summer activities. The company also offers non-winter attractions, such as golf, roller coasters, swimming, summer concerts, and zip rides. It operates 14 ski resorts primarily located in the Northeast and Midwest. Peak Resorts, Inc. was founded in 1997 and is based in Wildwood, Missouri.

About Huazhu Group

Huazhu Group Limited, together with its subsidiaries, develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers. As of September 30, 2018, it had 698 leased hotels, 3,139 manachised hotels, and 218 franchised hotels with 409,516 rooms. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was incorporated in 2007 and is headquartered in Shanghai, the People's Republic of China.

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