Reviewing Portillo’s (NASDAQ:PTLO) and Wyndham Hotels & Resorts (NYSE:WH)

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

Valuation and Earnings

This table compares Wyndham Hotels & Resorts and Portillo’s”s top-line 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	3.51	$193.00 million	$2.72	24.82
Portillo’s	$732.07 million	0.40	$19.34 million	$0.18	21.44

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

Risk & Volatility

Wyndham Hotels & Resorts has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Portillo’s has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	14.67%	74.22%	8.58%
Portillo’s	1.85%	2.78%	0.86%

Insider and Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 98.3% of Portillo’s shares are held by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are held by company insiders. Comparatively, 6.3% of Portillo’s shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Wyndham Hotels & Resorts and Portillo’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	5	8	0	2.62
Portillo’s	1	10	2	0	2.08

Wyndham Hotels & Resorts currently has a consensus target price of $95.64, suggesting a potential upside of 41.69%. Portillo’s has a consensus target price of $5.92, suggesting a potential upside of 53.50%. Given Portillo’s’ higher possible upside, analysts plainly believe Portillo’s is more favorable than Wyndham Hotels & Resorts.

Summary

Wyndham Hotels & Resorts beats Portillo’s on 10 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 Portillo’s

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.