OneSpaWorld (NASDAQ:OSW) and Vail Resorts (NYSE:MTN) Head-To-Head Contrast

Vail Resorts (NYSE:MTN) and OneSpaWorld (NASDAQ:OSW) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.

Institutional & Insider Ownership

94.9% of Vail Resorts shares are held by institutional investors. Comparatively, 96.0% of OneSpaWorld shares are held by institutional investors. 1.2% of Vail Resorts shares are held by insiders. Comparatively, 3.9% of OneSpaWorld shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.6%. OneSpaWorld pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. 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. OneSpaWorld pays out 28.2% of its earnings in the form of a dividend. Vail Resorts has increased 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.

Risk and Volatility

Vail Resorts has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, OneSpaWorld has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares Vail Resorts and OneSpaWorld”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.96 billion	1.62	$280.00 million	$6.82	19.65
OneSpaWorld	$895.02 million	2.35	$72.86 million	$0.71	29.07

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

Profitability

This table compares Vail Resorts and OneSpaWorld’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	8.94%	32.51%	4.66%
OneSpaWorld	7.90%	16.38%	12.27%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Vail Resorts and OneSpaWorld, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	1	8	3	0	2.17
OneSpaWorld	0	0	7	1	3.13

Vail Resorts presently has a consensus price target of $176.00, suggesting a potential upside of 31.35%. OneSpaWorld has a consensus price target of $24.60, suggesting a potential upside of 19.19%. Given Vail Resorts’ higher probable upside, equities analysts clearly believe Vail Resorts is more favorable than OneSpaWorld.

Summary

OneSpaWorld beats Vail Resorts on 10 of the 18 factors compared between the two stocks.

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.

About OneSpaWorld

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide. Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services. The company also provides its guests access to beauty and wellness brands, including ELEMIS, Grown Alchemist, Kérastase, Dysport, Restylane, Thermage, CoolSculpting, truSculpt 3D, truSculpt iD, Good Feet, and Hyperice with various brands offered in the cruise market. The company is based in Nassau, Bahamas.