Marriott Vacations Worldwide (NYSE:VAC) and Intergroup (NASDAQ:INTG) Critical Analysis

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

Earnings & Valuation

This table compares Intergroup and Marriott Vacations Worldwide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intergroup	$73.95 million	0.94	$1.64 million	$0.71	45.31
Marriott Vacations Worldwide	$5.03 billion	0.72	-$308.00 million	($9.74)	-10.80

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

Institutional and Insider Ownership

3.4% of Intergroup shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 73.8% of Intergroup shares are held by company insiders. Comparatively, 13.3% of Marriott Vacations Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Intergroup has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500. Comparatively, Marriott Vacations Worldwide has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intergroup	2.22%	-1.43%	1.60%
Marriott Vacations Worldwide	-6.47%	12.27%	2.68%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Intergroup and Marriott Vacations Worldwide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intergroup	0	1	0	0	2.00
Marriott Vacations Worldwide	2	3	8	1	2.57

Marriott Vacations Worldwide has a consensus price target of $107.83, indicating a potential upside of 2.52%. Given Marriott Vacations Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Intergroup.

Summary

Marriott Vacations Worldwide beats Intergroup on 9 of the 15 factors compared between the two stocks.

About Intergroup

The InterGroup Corporation, through its subsidiaries, operates a hotel under the Hilton San Francisco Financial District name located in San Francisco, California. The company operates through three segments: Hotel Operations, Real Estate Operations, and Investment Transactions. Its hotel consists of guest rooms and luxury suites, a restaurant, a lounge, a private dining room, meeting room space, a gym, a grand ballroom, 5-level underground parking garage, a pedestrian bridge, and a Chinese culture center. The company also invests in income-producing instruments, corporate debt and equity securities, publicly traded investment funds, mortgage-backed securities, securities issued by REITs, and other companies that invest primarily in real estate. In addition, it owns, manages, and invests in apartment complexes, single-family houses as strategic investments, and commercial real estate property located in the United States, as well as owns unimproved land in Maui, Hawaii. The InterGroup Corporation was founded in 1965 and is based in Los Angeles, California.

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.