Critical Contrast: Marriott International (NASDAQ:MAR) vs. Chipotle Mexican Grill (NYSE:CMG)

Marriott International (NASDAQ:MAR) and Chipotle Mexican Grill (NYSE:CMG) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Insider and Institutional Ownership

70.7% of Marriott International shares are owned by institutional investors. Comparatively, 91.3% of Chipotle Mexican Grill shares are owned by institutional investors. 11.4% of Marriott International shares are owned by company insiders. Comparatively, 0.5% of Chipotle Mexican Grill shares are owned by company 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.

Profitability

This table compares Marriott International and Chipotle Mexican Grill’s 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%
Chipotle Mexican Grill	11.43%	54.65%	16.21%

Risk and Volatility

Marriott International has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Chipotle Mexican Grill has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Marriott International and Chipotle Mexican Grill”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott International	$26.19 billion	3.55	$2.60 billion	$9.65	36.94
Chipotle Mexican Grill	$11.93 billion	3.26	$1.54 billion	$1.09	28.16

Marriott International has higher revenue and earnings than Chipotle Mexican Grill. Chipotle Mexican Grill is trading at a lower price-to-earnings ratio than Marriott International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Marriott International and Chipotle Mexican Grill, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott International	0	10	10	2	2.64
Chipotle Mexican Grill	0	10	23	0	2.70

Marriott International currently has a consensus target price of $385.88, indicating a potential upside of 8.24%. Chipotle Mexican Grill has a consensus target price of $43.91, indicating a potential upside of 43.06%. Given Chipotle Mexican Grill’s stronger consensus rating and higher probable upside, analysts clearly believe Chipotle Mexican Grill is more favorable than Marriott International.

Summary

Marriott International beats Chipotle Mexican Grill on 8 of the 15 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 Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. It sells food and beverages through offering burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery and related services its app and website. It has operations in the United States, Canada, France, Germany, and the United Kingdom. Chipotle Mexican Grill, Inc. was founded in 1993 and is headquartered in Newport Beach, California.