Manchester United (NYSE:MANU – Get Free Report) and Travel + Leisure (NYSE:TNL – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, risk, dividends, earnings and profitability.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Manchester United and Travel + Leisure, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manchester United | 1 | 0 | 0 | 0 | 1.00 |
| Travel + Leisure | 0 | 2 | 8 | 1 | 2.91 |
Travel + Leisure has a consensus target price of $72.22, indicating a potential downside of 1.62%. Given Travel + Leisure’s stronger consensus rating and higher probable upside, analysts plainly believe Travel + Leisure is more favorable than Manchester United.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Manchester United | -6.14% | -10.21% | -1.20% |
| Travel + Leisure | 10.36% | -49.06% | 6.24% |
Volatility & Risk
Manchester United has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Insider and Institutional Ownership
23.3% of Manchester United shares are owned by institutional investors. Comparatively, 87.5% of Travel + Leisure shares are owned by institutional investors. 68.6% of Manchester United shares are owned by insiders. Comparatively, 3.8% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Manchester United and Travel + Leisure”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manchester United | $862.42 million | 3.32 | -$42.74 million | ($0.31) | -53.53 |
| Travel + Leisure | $3.86 billion | 1.22 | $411.00 million | $6.08 | 12.07 |
Travel + Leisure has higher revenue and earnings than Manchester United. Manchester United is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.
Summary
Travel + Leisure beats Manchester United on 12 of the 15 factors compared between the two stocks.
About Manchester United
Manchester United plc, together with its subsidiaries, owns and operates a professional sports team in the United Kingdom. It operates Manchester United Football Club, a professional football club. The company develops marketing and sponsorship relationships with international and regional companies to leverage its brand. It also markets and sells sports apparel, training and leisure wear, and other clothing; and other licensed products, such as coffee mugs and bed spreads featuring the Manchester United brand and trademarks, as well as distributes these products through Manchester United branded retail centers and e-commerce platforms, and through the company’s partners’ wholesale distribution channels. In addition, the company distributes live football content directly, as well as through commercial partners; broadcasts television rights relating to the Premier League, Union of European Football Associations club competitions, and other competitions; and delivers Manchester United programming through MUTV television channel to territories worldwide. Further, it operates Old Trafford, a sports venue with 74,240 seats, as well as invests in properties. The company was formerly known as Manchester United Ltd. changed its name to Manchester United plc in August 2012. Manchester United plc was founded in 1878 and is headquartered in Manchester, the United Kingdom.
About Travel + Leisure
Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.
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