Wynn Macau (OTCMKTS:WYNMY) versus H World Group (NASDAQ:HTHT) Critical Review

Wynn Macau (OTCMKTS:WYNMY) and H World Group (NASDAQ:HTHT) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Dividends

Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 4.8%. H World Group pays an annual dividend of $1.90 per share and has a dividend yield of 6.1%. H World Group pays out 131.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Wynn Macau and H World Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	1	0	0	1	2.50
H World Group	0	2	3	0	2.60

H World Group has a consensus target price of $40.80, indicating a potential upside of 31.36%. Given H World Group’s stronger consensus rating and higher probable upside, analysts plainly believe H World Group is more favorable than Wynn Macau.

Profitability

This table compares Wynn Macau and H World Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wynn Macau	N/A	N/A	N/A
H World Group	13.74%	27.79%	5.35%

Volatility & Risk

Wynn Macau has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, H World Group has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares Wynn Macau and H World Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.68 billion	1.18	$410.01 million	N/A	N/A
H World Group	$3.27 billion	2.91	$418.00 million	$1.44	21.57

H World Group has lower revenue, but higher earnings than Wynn Macau.

Insider & Institutional Ownership

46.4% of H World Group shares are owned by institutional investors. 49.4% of H World Group shares are owned 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.

Summary

H World Group beats Wynn Macau on 12 of the 15 factors compared between the two stocks.

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.

About H World Group

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.