Contrasting Marriott Vacations Worldwide (NYSE:VAC) and Planet Fitness (NYSE:PLNT)

Planet Fitness (NYSE:PLNTGet Free Report) and Marriott Vacations Worldwide (NYSE:VACGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Planet Fitness and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Planet Fitness 15.97% -126.58% 8.08%
Marriott Vacations Worldwide 3.44% 11.44% 2.83%

Analyst Ratings

This is a summary of current ratings for Planet Fitness and Marriott Vacations Worldwide, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Planet Fitness 0 3 12 1 2.88
Marriott Vacations Worldwide 4 1 4 0 2.00

Planet Fitness presently has a consensus target price of $117.23, indicating a potential upside of 4.70%. Marriott Vacations Worldwide has a consensus target price of $63.38, indicating a potential upside of 16.31%. Given Marriott Vacations Worldwide’s higher possible upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Planet Fitness.

Institutional and Insider Ownership

95.5% of Planet Fitness shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 0.8% of Planet Fitness shares are held by company insiders. Comparatively, 1.6% of Marriott Vacations Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Planet Fitness and Marriott Vacations Worldwide”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Planet Fitness $1.18 billion 7.89 $172.04 million $2.45 45.70
Marriott Vacations Worldwide $4.97 billion 0.38 $218.00 million $4.46 12.22

Marriott Vacations Worldwide has higher revenue and earnings than Planet Fitness. Marriott Vacations Worldwide is trading at a lower price-to-earnings ratio than Planet Fitness, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Planet Fitness has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Summary

Planet Fitness beats Marriott Vacations Worldwide on 8 of the 15 factors compared between the two stocks.

About Planet Fitness

(Get Free Report)

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.

About Marriott Vacations Worldwide

(Get Free Report)

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.

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