Head to Head Contrast: ONE Group Hospitality (NASDAQ:STKS) & Travel + Leisure (NYSE:TNL)

ONE Group Hospitality (NASDAQ:STKS) and Travel + Leisure (NYSE:TNL) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

29.1% of ONE Group Hospitality shares are owned by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are owned by institutional investors. 25.7% of ONE Group Hospitality shares are owned by insiders. Comparatively, 4.0% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ONE Group Hospitality and Travel + Leisure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ONE Group Hospitality	-10.25%	-10.49%	-0.62%
Travel + Leisure	5.81%	-46.91%	6.59%

Earnings and Valuation

This table compares ONE Group Hospitality and Travel + Leisure”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ONE Group Hospitality	$800.51 million	0.05	-$92.24 million	($3.80)	-0.32
Travel + Leisure	$4.02 billion	0.98	$230.00 million	$3.66	17.67

Travel + Leisure has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations for ONE Group Hospitality and Travel + Leisure, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ONE Group Hospitality	1	2	1	0	2.00
Travel + Leisure	0	3	11	0	2.79

ONE Group Hospitality currently has a consensus price target of $4.00, suggesting a potential upside of 230.58%. Travel + Leisure has a consensus price target of $85.33, suggesting a potential upside of 31.94%. Given ONE Group Hospitality’s higher possible upside, equities analysts clearly believe ONE Group Hospitality is more favorable than Travel + Leisure.

Volatility & Risk

ONE Group Hospitality has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Summary

Travel + Leisure beats ONE Group Hospitality on 10 of the 14 factors compared between the two stocks.

About ONE Group Hospitality

The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.