Critical Review: Wyndham Hotels & Resorts (NYSE:WH) versus Wynn Macau (OTCMKTS:WYNMY)

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

Dividends

Wyndham Hotels & Resorts pays an annual dividend of $1.64 per share and has a dividend yield of 2.0%. Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 5.4%. Wyndham Hotels & Resorts pays out 37.7% of its earnings in the form of a dividend. Wyndham Hotels & Resorts has raised its dividend for 5 consecutive years.

Institutional & Insider Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. 2.5% of Wyndham Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	23.54%	61.12%	8.51%
Wynn Macau	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Wyndham Hotels & Resorts and Wynn Macau, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	6	8	0	2.57
Wynn Macau	1	0	0	2	3.00

Wyndham Hotels & Resorts presently has a consensus target price of $91.88, indicating a potential upside of 13.32%. Given Wyndham Hotels & Resorts’ higher possible upside, analysts plainly believe Wyndham Hotels & Resorts is more favorable than Wynn Macau.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.41 billion	4.35	$289.00 million	$4.35	18.64
Wynn Macau	$3.68 billion	1.06	$410.01 million	N/A	N/A

Wynn Macau has higher revenue and earnings than Wyndham Hotels & Resorts.

Volatility & Risk

Wyndham Hotels & Resorts has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Wynn Macau has a beta of 0.1, suggesting that its stock price is 90% less volatile than the S&P 500.

Summary

Wyndham Hotels & Resorts beats Wynn Macau on 10 of the 16 factors compared between the two stocks.

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.

About Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.