Choice Hotels International (NYSE:CHH) vs. Wynn Macau (OTCMKTS:WYNMY) Critical Contrast

Wynn Macau (OTCMKTS:WYNMY) and Choice Hotels International (NYSE:CHH) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

65.6% of Choice Hotels International shares are owned by institutional investors. 24.0% of Choice Hotels International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wynn Macau and Choice Hotels International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	1	0	0	1	2.50
Choice Hotels International	5	6	2	0	1.77

Choice Hotels International has a consensus price target of $129.15, suggesting a potential upside of 19.10%. Given Choice Hotels International’s higher probable upside, analysts plainly believe Choice Hotels International is more favorable than Wynn Macau.

Profitability

This table compares Wynn Macau and Choice Hotels International’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
Choice Hotels International	19.52%	-575.73%	12.92%

Valuation & Earnings

This table compares Wynn Macau and Choice Hotels International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.68 billion	1.32	$410.01 million	N/A	N/A
Choice Hotels International	$1.58 billion	3.17	$299.67 million	$6.50	16.68

Wynn Macau has higher revenue and earnings than Choice Hotels International.

Volatility & Risk

Wynn Macau has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Dividends

Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 4.3%. Choice Hotels International pays an annual dividend of $1.15 per share and has a dividend yield of 1.1%. Choice Hotels International pays out 17.7% of its earnings in the form of a dividend.

Summary

Choice Hotels International beats Wynn Macau on 8 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 Choice Hotels International

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.