H World Group (NASDAQ:HTHT – Get Free Report) and Six Flags Entertainment (NYSE:FUN – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for H World Group and Six Flags Entertainment, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H World Group | 0 | 1 | 3 | 0 | 2.75 |
| Six Flags Entertainment | 2 | 6 | 6 | 0 | 2.29 |
H World Group currently has a consensus target price of $61.20, indicating a potential upside of 22.82%. Six Flags Entertainment has a consensus target price of $14.85, indicating a potential upside of 33.14%. Given Six Flags Entertainment’s higher probable upside, analysts plainly believe Six Flags Entertainment is more favorable than H World Group.
Dividends
H World Group pays an annual dividend of $1.70 per share and has a dividend yield of 3.4%. Six Flags Entertainment pays an annual dividend of $0.30 per share and has a dividend yield of 2.7%. H World Group pays out 74.9% of its earnings in the form of a dividend. Six Flags Entertainment pays out -3.3% 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.
Insider & Institutional Ownership
46.4% of H World Group shares are held by institutional investors. Comparatively, 64.7% of Six Flags Entertainment shares are held by institutional investors. 49.4% of H World Group shares are held by insiders. Comparatively, 2.1% of Six Flags Entertainment shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares H World Group and Six Flags Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| H World Group | 18.90% | 41.05% | 8.07% |
| Six Flags Entertainment | -31.91% | -15.95% | -0.37% |
Valuation and Earnings
This table compares H World Group and Six Flags Entertainment”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H World Group | $3.62 billion | 4.34 | $726.00 million | $2.27 | 21.95 |
| Six Flags Entertainment | $2.91 billion | 0.39 | -$1.60 billion | ($9.14) | -1.22 |
H World Group has higher revenue and earnings than Six Flags Entertainment. Six Flags Entertainment is trading at a lower price-to-earnings ratio than H World Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
H World Group has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Six Flags Entertainment has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Summary
H World Group beats Six Flags Entertainment on 11 of the 16 factors compared between the two stocks.
About H World Group
H World Group Limited is a hotel company that develops, operates, franchises and manages hotels. Its business includes both directly operated properties and hotels run by third-party owners under its brands and management or franchise arrangements. The company’s portfolio includes brands serving different market segments, such as HanTing, JI Hotel and Crystal Orange in China, as well as Steigenberger, IntercityHotel and Zleep Hotels through its European operations. Its offerings range from economy and midscale lodging to upscale hotels.
About Six Flags Entertainment
Six Flags Entertainment Corporation operates amusement parks, water parks and related resort properties. Its attractions include rides, live entertainment, family activities, dining and seasonal events, with access offered through single-day tickets, season passes and other guest programs. The company serves visitors across the United States, Canada and Mexico through parks that include properties formerly operated by both the Six Flags and Cedar Fair organizations. Six Flags Entertainment was formed when Cedar Fair and Six Flags combined in a merger completed in 2024.
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