Financial Comparison: Marriott Vacations Worldwide (NYSE:VAC) & Intergroup (NASDAQ:INTG)

Marriott Vacations Worldwide (NYSE:VAC) and Intergroup (NASDAQ:INTG) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Volatility and Risk

Marriott Vacations Worldwide has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Marriott Vacations Worldwide and Intergroup, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	2	3	8	1	2.57
Intergroup	0	1	0	0	2.00

Marriott Vacations Worldwide presently has a consensus target price of $108.25, suggesting a potential downside of 3.70%. Given Marriott Vacations Worldwide’s stronger consensus rating and higher probable upside, equities analysts plainly believe Marriott Vacations Worldwide is more favorable than Intergroup.

Valuation and Earnings

This table compares Marriott Vacations Worldwide and Intergroup”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$5.16 billion	0.75	-$308.00 million	($9.74)	-11.54
Intergroup	$73.95 million	0.95	$1.64 million	$0.71	45.83

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

Insider & Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 13.3% of Marriott Vacations Worldwide shares are owned by company insiders. Comparatively, 73.8% of Intergroup shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	-6.47%	12.27%	2.68%
Intergroup	2.22%	-1.43%	1.60%

Summary

Marriott Vacations Worldwide beats Intergroup on 9 of the 15 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 Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.