Critical Analysis: Wyndham Hotels & Resorts (NYSE:WH) vs. Sands China (OTCMKTS:SCHYY)

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

Risk and Volatility

Wyndham Hotels & Resorts has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Sands China has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. 2.5% of Wyndham Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Wyndham Hotels & Resorts pays an annual dividend of $1.64 per share and has a dividend yield of 2.0%. Sands China pays an annual dividend of $0.55 per share and has a dividend yield of 2.0%. Wyndham Hotels & Resorts pays out 38.3% of its earnings in the form of a dividend. Wyndham Hotels & Resorts has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Wyndham Hotels & Resorts and Sands China, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	1	11	0	2.92
Sands China	0	2	0	1	2.67

Wyndham Hotels & Resorts presently has a consensus price target of $106.98, indicating a potential upside of 28.95%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher possible upside, research analysts clearly believe Wyndham Hotels & Resorts is more favorable than Sands China.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	23.10%	60.79%	8.56%
Sands China	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.41 billion	4.50	$289.00 million	$4.28	19.38
Sands China	$7.08 billion	N/A	$1.05 billion	N/A	N/A

Sands China has higher revenue and earnings than Wyndham Hotels & Resorts.

Summary

Wyndham Hotels & Resorts beats Sands China on 10 of the 15 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 Sands China

Sands China Ltd. develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao, The Londoner Macao, The Parisian Macao resort, The Plaza Macao, and The Sands Macao casino; the Cotai Expo, a convention and exhibition hall; and the Cotai Arena and the Londoner Arena entertainment venues, as well as Cotai Water Jet ferry for leisure and business travelers. It also offers ferry transportation and leasing services, and pontoon leasing; gaming and other related activities; travel and tourism agency services; security services; human resources administration services; and mall management services, as well as outsourcing services, including information technology, accounting, hotel management, and marketing. The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. is a subsidiary of Las Vegas Sands Corp.