Wyndham Worldwide (WYN) & The Competition Critical Contrast

Wyndham Worldwide (NYSE: WYN) is one of 30 public companies in the “Hotels & motels” industry, but how does it compare to its rivals? We will compare Wyndham Worldwide to related businesses based on the strength of its analyst recommendations, valuation, profitability, dividends, institutional ownership, earnings and risk.

Institutional & Insider Ownership

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93.0% of Wyndham Worldwide shares are held by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are held by institutional investors. 2.2% of Wyndham Worldwide shares are held by company insiders. Comparatively, 19.0% of shares of all “Hotels & motels” companies are held by company 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.

Analyst Recommendations

This is a summary of recent ratings and price targets for Wyndham Worldwide and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wyndham Worldwide 1 2 7 0 2.60
Wyndham Worldwide Competitors 308 1443 2192 75 2.51

Wyndham Worldwide currently has a consensus price target of $134.00, suggesting a potential upside of 16.79%. As a group, “Hotels & motels” companies have a potential upside of 0.16%. Given Wyndham Worldwide’s stronger consensus rating and higher probable upside, equities analysts plainly believe Wyndham Worldwide is more favorable than its rivals.

Dividends

Wyndham Worldwide pays an annual dividend of $2.64 per share and has a dividend yield of 2.3%. Wyndham Worldwide pays out 48.0% 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. Wyndham Worldwide has raised its dividend for 8 consecutive years. Wyndham Worldwide is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility & Risk

Wyndham Worldwide has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Wyndham Worldwide’s rivals have a beta of 1.15, suggesting that their average share price is 15% more volatile than the S&P 500.

Valuation and Earnings

This table compares Wyndham Worldwide and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Wyndham Worldwide $5.08 billion $871.00 million 20.86
Wyndham Worldwide Competitors $3.57 billion $470.05 million 184.05

Wyndham Worldwide has higher revenue and earnings than its rivals. Wyndham Worldwide is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Wyndham Worldwide and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wyndham Worldwide 15.35% 92.39% 6.19%
Wyndham Worldwide Competitors 10.97% 12.75% 4.81%

Summary

Wyndham Worldwide beats its rivals on 12 of the 15 factors compared.

Wyndham Worldwide Company Profile

Wyndham Worldwide Corporation provides hospitality services and products to individual and business customers worldwide. It operates through three segments: Hotel Group, Destination Network, and Vacation Ownership. The Hotel Group segment primarily franchises hotels in the upscale, upper midscale, midscale, economy, and extended stay segments, as well as provides property management services for full-service and select limited-service hotels. This segment operates approximately 8,422 franchised hotels and 728,000 hotel rooms. The Destination Network segment provides vacation exchange services and products to owners of vacation ownership interests (VOIs); and manages and markets vacation rental properties primarily on behalf of independent owners. This segment operates vacation exchange network with approximately 3.9 million members. The Vacation Ownership segment develops, markets, and sells VOIs to individual consumers; and provides consumer financing in connection with the sale of VOIs, as well as offers property management services at resorts. The company offers its hospitality services and products under the Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club, and WorldMark by Wyndham. Wyndham Worldwide Corporation was founded in 1990 and is headquartered in Parsippany, New Jersey.

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