Hyatt Hotels (NYSE:H) vs. Wynn Macau (OTCMKTS:WYNMF) Financial Review

Hyatt Hotels (NYSE:H) and Wynn Macau (OTCMKTS:WYNMF) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Analyst Ratings

This is a summary of recent recommendations for Hyatt Hotels and Wynn Macau, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyatt Hotels	0	7	10	2	2.74
Wynn Macau	0	0	1	0	3.00

Hyatt Hotels presently has a consensus price target of $175.06, indicating a potential upside of 9.51%. Given Hyatt Hotels’ higher probable upside, equities analysts clearly believe Hyatt Hotels is more favorable than Wynn Macau.

Institutional & Insider Ownership

73.5% of Hyatt Hotels shares are owned by institutional investors. 23.7% of Hyatt Hotels shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hyatt Hotels and Wynn Macau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyatt Hotels	-0.73%	5.53%	1.40%
Wynn Macau	N/A	N/A	N/A

Valuation & Earnings

This table compares Hyatt Hotels and Wynn Macau”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyatt Hotels	$7.10 billion	2.13	-$52.00 million	($0.56)	-285.46
Wynn Macau	$3.68 billion	N/A	$410.01 million	N/A	N/A

Wynn Macau has lower revenue, but higher earnings than Hyatt Hotels.

Risk and Volatility

Hyatt Hotels has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Wynn Macau has a beta of -0.28, indicating that its stock price is 128% less volatile than the S&P 500.

Summary

Hyatt Hotels beats Wynn Macau on 9 of the 12 factors compared between the two stocks.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

About Wynn Macau

Wynn Macau, Limited engages in the development, ownership, and operation of integrated destination casino resorts in the People’s Republic of China. It operates through two segments, Wynn Palace and Wynn Macau. The company offers tables games, slot machines or similar gaming devices; offers 24-hour gaming, and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; food and beverage outlets; brand-name and retail shopping; recreation and leisure facilities, including a cable car ride through SkyCab, health club, spa, salon, and pool; and a meeting and convention spaces. It provides poker pit games; and public entertainment attractions, consisting of rotunda show featuring a Chinese zodiac-inspired ceiling along with gold tree of prosperity and dragon of fortune attractions, as well as performance lake. In addition, the company is involved in the development, design, and preconstruction activities, and offers technical consultancy, administrative activities, and management and support services. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.