Reviewing Jollibee Foods (OTCMKTS:JBFCY) and Wyndham Hotels & Resorts (NYSE:WH)

Jollibee Foods (OTCMKTS:JBFCY) and Wyndham Hotels & Resorts (NYSE:WH) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Jollibee Foods and Wyndham Hotels & Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jollibee Foods	0	1	0	0	2.00
Wyndham Hotels & Resorts	0	5	9	0	2.64

Wyndham Hotels & Resorts has a consensus price target of $94.92, suggesting a potential upside of 30.07%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Wyndham Hotels & Resorts is more favorable than Jollibee Foods.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Jollibee Foods	3.16%	14.04%	3.55%
Wyndham Hotels & Resorts	13.97%	77.43%	8.46%

Dividends

Jollibee Foods pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Wyndham Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 2.4%. Jollibee Foods pays out 15.5% of its earnings in the form of a dividend. Wyndham Hotels & Resorts pays out 63.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Wyndham Hotels & Resorts has raised its dividend for 5 consecutive years. Wyndham Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Jollibee Foods and Wyndham Hotels & Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jollibee Foods	$5.31 billion	0.46	$189.17 million	$0.58	15.17
Wyndham Hotels & Resorts	$1.43 billion	3.72	$193.00 million	$2.69	27.13

Wyndham Hotels & Resorts has lower revenue, but higher earnings than Jollibee Foods. Jollibee Foods 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.

Summary

Wyndham Hotels & Resorts beats Jollibee Foods on 14 of the 16 factors compared between the two stocks.

About Jollibee Foods

Jollibee Foods Corporation develops, operates, and franchises quick service restaurants. The company operates quick-service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, PHO24, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Yoshinoya, Milksha, and Panda Express names in the Philippines, the United States, Canada, the People's Republic of China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Australia, and India. It also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources, and logistics services. The company was incorporated in 1978 and is based in Pasig, the Philippines.

About Wyndham Hotels & Resorts

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.