Head-To-Head Analysis: Wyndham Worldwide (WYN) and Interval Leisure Group (ILG)

Wyndham Worldwide (NYSE: WYN) and Interval Leisure Group (NASDAQ:ILG) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

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This is a summary of current recommendations and price targets for Wyndham Worldwide and Interval Leisure Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wyndham Worldwide 1 2 7 0 2.60
Interval Leisure Group 0 1 6 0 2.86

Wyndham Worldwide currently has a consensus price target of $128.57, suggesting a potential upside of 14.40%. Interval Leisure Group has a consensus price target of $32.83, suggesting a potential upside of 3.71%. Given Wyndham Worldwide’s higher probable upside, equities analysts clearly believe Wyndham Worldwide is more favorable than Interval Leisure Group.

Volatility and Risk

Wyndham Worldwide has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500. Comparatively, Interval Leisure Group has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Profitability

This table compares Wyndham Worldwide and Interval Leisure Group’s 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%
Interval Leisure Group 9.35% 8.41% 3.95%

Insider and Institutional Ownership

92.9% of Wyndham Worldwide shares are held by institutional investors. Comparatively, 84.1% of Interval Leisure Group shares are held by institutional investors. 2.4% of Wyndham Worldwide shares are held by company insiders. Comparatively, 2.0% of Interval Leisure Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Wyndham Worldwide pays an annual dividend of $2.64 per share and has a dividend yield of 2.3%. Interval Leisure Group pays an annual dividend of $0.70 per share and has a dividend yield of 2.2%. Wyndham Worldwide pays out 31.2% of its earnings in the form of a dividend. Interval Leisure Group pays out 52.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Interval Leisure Group has raised its dividend for 8 consecutive years. Wyndham Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Wyndham Worldwide and Interval Leisure Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wyndham Worldwide $5.08 billion 2.21 $871.00 million $8.46 13.28
Interval Leisure Group $1.79 billion 2.20 $168.00 million $1.34 23.63

Wyndham Worldwide has higher revenue and earnings than Interval Leisure Group. Wyndham Worldwide is trading at a lower price-to-earnings ratio than Interval Leisure Group, indicating that it is currently the more affordable of the two stocks.

Summary

Wyndham Worldwide beats Interval Leisure Group on 13 of the 17 factors compared between the two stocks.

About Wyndham Worldwide

Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include 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, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham. As of December 31, 2016, its Wyndham Hotel Group had 8,035 hotels and over 697,600 hotel rooms around the world. Its Wyndham Destination Network segment offers non-hotel accommodations. The Wyndham Vacation Ownership segment develops and acquires vacation ownership resorts.

About Interval Leisure Group

ILG, Inc., together with its subsidiaries, provides professional vacation services in the United States and internationally. The company operates in two segments, Vacation Ownership (VO), and Exchange and Rental. The VO segment engages in the sale, marketing, financing, and development of vacation ownership interests; and management of vacation ownership resorts, as well as in the provision of related services to owners and homeowners' associations (HOAs). The Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers by providing vacation exchange and rental services. This segment also provides leisure and travel related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients and HOAs; and allows owners of vacation interests to exchange their occupancy rights for alternative accommodations at another resort and/or occupancy period. In addition, this segment offers vacation property rental services for condominium owners, hotel owners, and HOAs. As of December 31, 2017, it operated a total of 43 resorts within Vistana Signature Experiences and Hyatt Vacation Ownership businesses; and managed approximately 250 resorts, vacation ownership properties, and/or their associations. The company was formerly known as Interval Leisure Group, Inc. and changed its name to ILG, Inc. in October 2016. ILG, Inc. was founded in 1976 and is headquartered in Miami, Florida.

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