Head-To-Head Survey: Marriott Vacations Worldwide (NYSE:VAC) & Target Hospitality (NASDAQ:TH)

Target Hospitality (NASDAQ:TH) and Marriott Vacations Worldwide (NYSE:VAC) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	-3.08%	-1.78%	-1.24%
Marriott Vacations Worldwide	-6.12%	11.77%	2.78%

Insider and Institutional Ownership

32.4% of Target Hospitality shares are owned by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are owned by institutional investors. 68.0% of Target Hospitality shares are owned by insiders. Comparatively, 1.6% of Marriott Vacations Worldwide shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Target Hospitality and Marriott Vacations Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	1	0	1	0	2.00
Marriott Vacations Worldwide	3	2	6	0	2.27

Target Hospitality currently has a consensus price target of $11.00, suggesting a potential upside of 40.49%. Marriott Vacations Worldwide has a consensus price target of $73.67, suggesting a potential upside of 4.20%. Given Target Hospitality’s higher possible upside, equities research analysts plainly believe Target Hospitality is more favorable than Marriott Vacations Worldwide.

Valuation & Earnings

This table compares Target Hospitality 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
Target Hospitality	$386.27 million	2.02	$71.26 million	($0.11)	-71.18
Marriott Vacations Worldwide	$5.03 billion	0.48	-$308.00 million	($9.27)	-7.63

Target Hospitality has higher earnings, but lower revenue than Marriott Vacations Worldwide. Target Hospitality 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

Target Hospitality has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.

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.