Financial Review: Intergroup (NASDAQ:INTG) & Wyndham Hotels & Resorts (NYSE:WH)

Wyndham Hotels & Resorts (NYSE:WH) and Intergroup (NASDAQ:INTG) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Volatility & Risk

Wyndham Hotels & Resorts has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Intergroup has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500.

Institutional and Insider Ownership

93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. Comparatively, 3.4% of Intergroup shares are owned by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are owned by insiders. Comparatively, 73.8% of Intergroup shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Wyndham Hotels & Resorts and Intergroup, as reported by MarketBeat.com.

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

Wyndham Hotels & Resorts presently has a consensus target price of $94.67, suggesting a potential upside of 23.05%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Wyndham Hotels & Resorts is more favorable than Intergroup.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.43 billion	3.92	$193.00 million	$2.69	28.60
Intergroup	$73.95 million	1.14	$1.64 million	$0.71	55.39

Wyndham Hotels & Resorts has higher revenue and earnings than Intergroup. Wyndham Hotels & Resorts is trading at a lower price-to-earnings ratio than Intergroup, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	13.97%	77.43%	8.46%
Intergroup	2.22%	-1.43%	1.60%

Summary

Wyndham Hotels & Resorts beats Intergroup on 12 of the 14 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 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.