Playa Hotels & Resorts (NASDAQ:PLYA) and Wyndham Destinations (NYSE:WYND) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Earnings and Valuation

This table compares Playa Hotels & Resorts and Wyndham Destinations’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Playa Hotels & Resorts $636.48 million 0.38 -$4.36 million $0.07 26.86
Wyndham Destinations $4.04 billion 0.46 $507.00 million $5.62 3.83

Wyndham Destinations has higher revenue and earnings than Playa Hotels & Resorts. Wyndham Destinations is trading at a lower price-to-earnings ratio than Playa Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Playa Hotels & Resorts and Wyndham Destinations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Playa Hotels & Resorts -0.68% 0.93% 0.36%
Wyndham Destinations 12.52% -92.76% 6.95%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Playa Hotels & Resorts and Wyndham Destinations, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Playa Hotels & Resorts 0 0 3 0 3.00
Wyndham Destinations 0 1 3 0 2.75

Playa Hotels & Resorts currently has a consensus price target of $10.33, suggesting a potential upside of 449.65%. Wyndham Destinations has a consensus price target of $61.00, suggesting a potential upside of 183.33%. Given Playa Hotels & Resorts’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Playa Hotels & Resorts is more favorable than Wyndham Destinations.

Risk and Volatility

Playa Hotels & Resorts has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Wyndham Destinations has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Insider & Institutional Ownership

71.3% of Playa Hotels & Resorts shares are owned by institutional investors. Comparatively, 88.9% of Wyndham Destinations shares are owned by institutional investors. 3.6% of Playa Hotels & Resorts shares are owned by company insiders. Comparatively, 1.6% of Wyndham Destinations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Wyndham Destinations beats Playa Hotels & Resorts on 9 of the 13 factors compared between the two stocks.

About Playa Hotels & Resorts

Playa Hotels & Resorts N.V. owns, operates, and develops all-inclusive resorts in prime beachfront locations in various vacation destinations in Mexico and the Caribbean. The company operates under eight brand names. As of February 28, 2019, it owned a portfolio consisting of 21 resorts comprising 7,908 rooms located in Mexico, Jamaica, and the Dominican Republic. Playa Hotels & Resorts N.V. is headquartered in Fairfax, Virginia.

About Wyndham Destinations

Wyndham Destinations, Inc. operates as a vacation ownership and exchange company in the United States and internationally. The company operates in two segments, Vacation Ownership and Exchange & Rentals. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers; provides consumer financing in connection with the sale of VOIs; and provides property management services at resorts. The Exchange & Rentals segment offers vacation exchange services and products to owners of VOIs; and manages and markets vacation rental properties primarily on behalf of independent owners. As of June 25, 2019, it had approximately 220 vacation ownership resorts. Wyndham Destinations, Inc. also has relationships with approximately 4,300 vacation ownership resorts. The company was formerly known as Wyndham Worldwide Corporation and changed its name to Wyndham Destinations, Inc. in May 2018. Wyndham Destinations, Inc. was founded in 1990 and is headquartered in Orlando, Florida.

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