Wynn Macau (OTCMKTS:WYNMY) versus Wyndham Hotels & Resorts (NYSE:WH) Critical Comparison

Wynn Macau (OTCMKTS:WYNMY) and Wyndham Hotels & Resorts (NYSE:WH) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Wynn Macau and Wyndham Hotels & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	1	0	0	2	3.00
Wyndham Hotels & Resorts	1	5	8	0	2.50

Wyndham Hotels & Resorts has a consensus target price of $91.88, suggesting a potential upside of 19.97%. Given Wyndham Hotels & Resorts’ higher probable upside, analysts clearly believe Wyndham Hotels & Resorts is more favorable than Wynn Macau.

Dividends

Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 5.0%. Wyndham Hotels & Resorts pays an annual dividend of $1.64 per share and has a dividend yield of 2.1%. Wyndham Hotels & Resorts pays out 37.7% of its earnings in the form of a dividend. Wyndham Hotels & Resorts has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Wynn Macau and Wyndham Hotels & Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.68 billion	1.14	$410.01 million	N/A	N/A
Wyndham Hotels & Resorts	$1.41 billion	4.11	$289.00 million	$4.35	17.60

Wynn Macau has higher revenue and earnings than Wyndham Hotels & Resorts.

Volatility & Risk

Wynn Macau has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Wyndham Hotels & Resorts has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500.

Profitability

This table compares Wynn Macau and Wyndham Hotels & Resorts’ 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
Wyndham Hotels & Resorts	23.54%	61.12%	8.51%

Institutional and Insider Ownership

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

Summary

Wyndham Hotels & Resorts beats Wynn Macau on 10 of the 16 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 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.