Contrasting Vail Resorts (NYSE:MTN) & Marriott Vacations Worldwide (NYSE:VAC)

Marriott Vacations Worldwide (NYSE:VAC) and Vail Resorts (NYSE:MTN) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Volatility and Risk

Marriott Vacations Worldwide has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Vail Resorts has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500.

Dividends

Marriott Vacations Worldwide pays an annual dividend of $3.20 per share and has a dividend yield of 5.8%. Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.5%. Marriott Vacations Worldwide pays out 71.7% of its earnings in the form of a dividend. Vail Resorts pays out 130.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marriott Vacations Worldwide has raised its dividend for 1 consecutive years and Vail Resorts has raised its dividend for 3 consecutive years. Vail Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Marriott Vacations Worldwide and Vail Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	3.44%	11.44%	2.83%
Vail Resorts	8.94%	32.51%	4.66%

Valuation & Earnings

This table compares Marriott Vacations Worldwide and Vail Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$4.97 billion	0.38	$218.00 million	$4.46	12.28
Vail Resorts	$2.96 billion	1.65	$280.00 million	$6.82	20.04

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	5	1	4	0	1.90
Vail Resorts	1	8	4	0	2.23

Marriott Vacations Worldwide presently has a consensus price target of $61.13, indicating a potential upside of 11.59%. Vail Resorts has a consensus price target of $173.27, indicating a potential upside of 26.79%. Given Vail Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Vail Resorts is more favorable than Marriott Vacations Worldwide.

Insider and Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are owned by institutional investors. Comparatively, 94.9% of Vail Resorts shares are owned by institutional investors. 1.6% of Marriott Vacations Worldwide shares are owned by company insiders. Comparatively, 1.2% of Vail Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Vail Resorts beats Marriott Vacations Worldwide on 12 of the 16 factors compared between the two stocks.

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.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.