Caesars Entertainment (NASDAQ:CZR – Get Free Report) and Marriott Vacations Worldwide (NYSE:VAC – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
91.8% of Caesars Entertainment shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 1.0% of Caesars Entertainment shares are held by insiders. Comparatively, 1.6% of Marriott Vacations Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings for Caesars Entertainment and Marriott Vacations Worldwide, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Caesars Entertainment | 2 | 6 | 11 | 1 | 2.55 |
| Marriott Vacations Worldwide | 4 | 1 | 4 | 0 | 2.00 |
Profitability
This table compares Caesars Entertainment and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Caesars Entertainment | -2.12% | -5.76% | -0.75% |
| Marriott Vacations Worldwide | 3.44% | 11.44% | 2.83% |
Valuation and Earnings
This table compares Caesars Entertainment and Marriott Vacations Worldwide”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Caesars Entertainment | $11.37 billion | 0.42 | -$278.00 million | ($1.15) | -20.49 |
| Marriott Vacations Worldwide | $4.97 billion | 0.41 | $218.00 million | $4.46 | 13.18 |
Marriott Vacations Worldwide has lower revenue, but higher earnings than Caesars Entertainment. Caesars Entertainment is trading at a lower price-to-earnings ratio than Marriott Vacations Worldwide, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Caesars Entertainment has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.
Summary
Caesars Entertainment beats Marriott Vacations Worldwide on 8 of the 15 factors compared between the two stocks.
About Caesars Entertainment
Caesars Entertainment, Inc. operates as a gaming and hospitality company. The company owns, leases, or manages domestic properties in 18 states with slot machines, video lottery terminals and e-tables, and hotel rooms, as well as table games, including poker. It also operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America; sports betting from our retail and online sportsbooks; and other games, such as keno. In addition, the company operates dining venues, bars, nightclubs, lounges, hotels, and entertainment venues; and provides staffing and management services. Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada.
About Marriott Vacations Worldwide
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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