Wyndham Hotels & Resorts (NYSE:WH) versus Tuniu (NASDAQ:TOUR) Critical Contrast

Wyndham Hotels & Resorts (NYSE:WHGet Free Report) and Tuniu (NASDAQ:TOURGet Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Wyndham Hotels & Resorts and Tuniu, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wyndham Hotels & Resorts 0 5 8 0 2.62
Tuniu 1 0 0 0 1.00

Wyndham Hotels & Resorts currently has a consensus price target of $95.64, suggesting a potential upside of 40.36%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Wyndham Hotels & Resorts is more favorable than Tuniu.

Volatility and Risk

Wyndham Hotels & Resorts has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Tuniu has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500.

Earnings & Valuation

This table compares Wyndham Hotels & Resorts and Tuniu”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wyndham Hotels & Resorts $1.43 billion 3.54 $193.00 million $2.72 25.05
Tuniu $82.65 million 0.66 $4.45 million $0.32 15.62

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

Insider & Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are held by insiders. Comparatively, 76.1% of Tuniu shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Wyndham Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 2.5%. Tuniu pays an annual dividend of $1.18 per share and has a dividend yield of 23.6%. Wyndham Hotels & Resorts pays out 63.2% of its earnings in the form of a dividend. Tuniu pays out 368.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wyndham Hotels & Resorts has raised its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Wyndham Hotels & Resorts 14.67% 74.22% 8.58%
Tuniu 3.73% 3.17% 1.90%

Summary

Wyndham Hotels & Resorts beats Tuniu on 15 of the 17 factors compared between the two stocks.

About Wyndham Hotels & Resorts

(Get Free Report)

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.

About Tuniu

(Get Free Report)

Tuniu Corporation operates as an online leisure travel company in China. The company offers various packaged tours, including organized and self-guided tours; and other travel-related services, such as tourist attraction tickets, visa application services, accommodation reservation, financial services, and hotel booking services, as well as air, train, and bus ticketing for leisure travelers. It also provides car rental and insurance services, as well as advertising services to tourism boards and bureaus. The company offers its products and services through various online and offline channels, including tuniu.com website; mobile platform; a call center in Nanjing; and other offline retail stores in China. Tuniu Corporation was founded in 2006 and is headquartered in Nanjing, the People's Republic of China.

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