Marriott International (NASDAQ: MAR) is one of 30 public companies in the “Hotels & motels” industry, but how does it weigh in compared to its peers? We will compare Marriott International to related businesses based on the strength of its dividends, profitability, valuation, risk, earnings, analyst recommendations and institutional ownership.
Profitability
This table compares Marriott International and its peers’ net margins, return on equity and return on assets.
|
Net Margins |
Return on Equity |
Return on Assets |
| Marriott International |
5.99% |
36.15% |
6.90% |
| Marriott International Competitors |
10.97% |
12.75% |
4.81% |
Risk and Volatility
Marriott International has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Marriott International’s peers have a beta of 1.15, suggesting that their average stock price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
65.7% of Marriott International shares are held by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are held by institutional investors. 11.3% of Marriott International shares are held by insiders. Comparatively, 19.3% of shares of all “Hotels & motels” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Marriott International and its peers gross revenue, earnings per share and valuation.
|
Gross Revenue |
Net Income |
Price/Earnings Ratio |
| Marriott International |
$22.89 billion |
$1.37 billion |
30.42 |
| Marriott International Competitors |
$3.57 billion |
$470.05 million |
165.38 |
Marriott International has higher revenue and earnings than its peers. Marriott International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Marriott International and its peers, as provided by MarketBeat.
|
Sell Ratings |
Hold Ratings |
Buy Ratings |
Strong Buy Ratings |
Rating Score |
| Marriott International |
0 |
7 |
8 |
0 |
2.53 |
| Marriott International Competitors |
307 |
1439 |
2180 |
73 |
2.50 |
Marriott International presently has a consensus target price of $127.50, indicating a potential downside of 3.85%. As a group, “Hotels & motels” companies have a potential upside of 4.57%. Given Marriott International’s peers higher probable upside, analysts clearly believe Marriott International has less favorable growth aspects than its peers.
Dividends
Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Marriott International pays out 30.3% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend.
Summary
Marriott International peers beat Marriott International on 8 of the 15 factors compared.
About Marriott International
Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through three segments: North American Full-Service, North American Limited-Service, and Asia Pacific. It operates its properties under the JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Westin, Renaissance, Le Méridien, Autograph Collection, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, Marriott Vacation Club, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of March 12, 2018, it operated, franchised, and licensed approximately 6,500 properties in 127 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.
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