Marriott Vacations Worldwide (NYSE:VAC – Get Free Report) and AMC Entertainment (NYSE:AMC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Valuation & Earnings
This table compares Marriott Vacations Worldwide and AMC Entertainment”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marriott Vacations Worldwide | $4.97 billion | 0.35 | $218.00 million | $4.46 | 11.38 |
| AMC Entertainment | $4.87 billion | 0.23 | -$352.60 million | ($1.41) | -1.56 |
Dividends
Marriott Vacations Worldwide pays an annual dividend of $3.16 per share and has a dividend yield of 6.2%. AMC Entertainment pays an annual dividend of $0.04 per share and has a dividend yield of 1.8%. Marriott Vacations Worldwide pays out 70.9% of its earnings in the form of a dividend. AMC Entertainment pays out -2.8% 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. Marriott Vacations Worldwide has raised its dividend for 1 consecutive years. Marriott Vacations Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Marriott Vacations Worldwide and AMC 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% |
| AMC Entertainment | -7.39% | N/A | -4.07% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Marriott Vacations Worldwide and AMC Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marriott Vacations Worldwide | 4 | 1 | 4 | 0 | 2.00 |
| AMC Entertainment | 2 | 6 | 1 | 0 | 1.89 |
Marriott Vacations Worldwide currently has a consensus price target of $63.38, suggesting a potential upside of 24.90%. AMC Entertainment has a consensus price target of $3.26, suggesting a potential upside of 48.11%. Given AMC Entertainment’s higher probable upside, analysts clearly believe AMC Entertainment is more favorable than Marriott Vacations Worldwide.
Institutional and Insider Ownership
89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 28.8% of AMC Entertainment shares are held by institutional investors. 1.6% of Marriott Vacations Worldwide shares are held by company insiders. Comparatively, 0.4% of AMC Entertainment shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Marriott Vacations Worldwide has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, AMC Entertainment has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Summary
Marriott Vacations Worldwide beats AMC Entertainment on 15 of the 17 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 AMC Entertainment
AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. It owns, operates, or has interests in theatres in the United States and Europe. The company was founded in 1920 and is headquartered in Leawood, Kansas.
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