Marriott Vacations Worldwide (NYSE:VAC – Get Free Report) and Caesars Entertainment (NASDAQ:CZR – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, institutional ownership, risk, profitability, valuation and analyst recommendations.
Profitability
This table compares Marriott Vacations Worldwide and Caesars Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marriott Vacations Worldwide | 3.44% | 11.44% | 2.83% |
| Caesars Entertainment | -2.12% | -5.76% | -0.75% |
Volatility and Risk
Marriott Vacations Worldwide has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Caesars Entertainment has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marriott Vacations Worldwide | 4 | 1 | 4 | 0 | 2.00 |
| Caesars Entertainment | 2 | 6 | 11 | 1 | 2.55 |
Marriott Vacations Worldwide currently has a consensus price target of $63.38, suggesting a potential upside of 1.43%. Caesars Entertainment has a consensus price target of $35.33, suggesting a potential upside of 48.65%. Given Caesars Entertainment’s stronger consensus rating and higher possible upside, analysts clearly believe Caesars Entertainment is more favorable than Marriott Vacations Worldwide.
Insider and Institutional Ownership
89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 91.8% of Caesars Entertainment shares are held by institutional investors. 1.6% of Marriott Vacations Worldwide shares are held by company insiders. Comparatively, 1.0% of Caesars Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Marriott Vacations Worldwide and Caesars Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marriott Vacations Worldwide | $4.97 billion | 0.44 | $218.00 million | $4.46 | 14.01 |
| Caesars Entertainment | $11.25 billion | 0.43 | -$278.00 million | ($1.15) | -20.67 |
Marriott Vacations Worldwide has higher earnings, but lower revenue than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Marriott Vacations Worldwide, indicating that it is currently the more affordable of the two stocks.
Summary
Marriott Vacations Worldwide beats Caesars Entertainment on 8 of the 15 factors compared between the two stocks.
About Marriott Vacations Worldwide
Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
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