Head-To-Head Analysis: Marriott Vacations Worldwide (NYSE:VAC) versus Travel + Leisure (NYSE:TNL)

Travel + Leisure (NYSE:TNL) and Marriott Vacations Worldwide (NYSE:VAC) are both mid-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

87.5% of Travel + Leisure shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 3.8% of Travel + Leisure shares are held by company insiders. Comparatively, 1.6% of Marriott Vacations Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Travel + Leisure and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	10.36%	-49.06%	6.24%
Marriott Vacations Worldwide	5.10%	11.74%	2.92%

Earnings and Valuation

This table compares Travel + Leisure and Marriott Vacations Worldwide”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$3.97 billion	1.06	$411.00 million	$6.08	10.73
Marriott Vacations Worldwide	$4.97 billion	0.49	$218.00 million	$6.65	10.61

Travel + Leisure has higher earnings, but lower revenue than Marriott Vacations Worldwide. Marriott Vacations Worldwide is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Dividends

Travel + Leisure pays an annual dividend of $2.24 per share and has a dividend yield of 3.4%. Marriott Vacations Worldwide pays an annual dividend of $3.16 per share and has a dividend yield of 4.5%. Travel + Leisure pays out 36.8% of its earnings in the form of a dividend. Marriott Vacations Worldwide pays out 47.5% 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. Travel + Leisure has increased its dividend for 5 consecutive years and Marriott Vacations Worldwide has increased its dividend for 1 consecutive years.

Volatility & Risk

Travel + Leisure has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Travel + Leisure and Marriott Vacations Worldwide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	1	1	10	0	2.75
Marriott Vacations Worldwide	2	1	4	0	2.29

Travel + Leisure presently has a consensus price target of $69.90, indicating a potential upside of 7.19%. Marriott Vacations Worldwide has a consensus price target of $92.67, indicating a potential upside of 31.33%. Given Marriott Vacations Worldwide’s higher probable upside, analysts plainly believe Marriott Vacations Worldwide is more favorable than Travel + Leisure.

Summary

Travel + Leisure beats Marriott Vacations Worldwide on 11 of the 17 factors compared between the two stocks.

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.

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.