Wyndham Worldwide (NYSE: WYN) and Thomas Cook Group (OTCMKTS:TCKGY) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Wyndham Worldwide pays an annual dividend of $2.64 per share and has a dividend yield of 2.3%. Thomas Cook Group pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. Wyndham Worldwide pays out 31.2% of its earnings in the form of a dividend. Wyndham Worldwide has raised its dividend for 8 consecutive years. Wyndham Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Wyndham Worldwide has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Thomas Cook Group has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Wyndham Worldwide and Thomas Cook Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Thomas Cook Group||1||1||3||0||2.40|
Wyndham Worldwide presently has a consensus price target of $128.57, indicating a potential upside of 12.42%. Given Wyndham Worldwide’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Wyndham Worldwide is more favorable than Thomas Cook Group.
Earnings and Valuation
This table compares Wyndham Worldwide and Thomas Cook Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wyndham Worldwide||$5.08 billion||2.25||$871.00 million||$8.46||13.52|
|Thomas Cook Group||$11.42 billion||0.22||$16.47 million||N/A||N/A|
Wyndham Worldwide has higher earnings, but lower revenue than Thomas Cook Group.
Institutional & Insider Ownership
93.0% of Wyndham Worldwide shares are held by institutional investors. 2.4% of Wyndham Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Wyndham Worldwide and Thomas Cook Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Thomas Cook Group||N/A||N/A||N/A|
Wyndham Worldwide beats Thomas Cook Group on 13 of the 15 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 Thomas Cook Group
Thomas Cook Group plc provides leisure travel services in the United Kingdom, Continental Europe, Northern Europe, and Germany. It also owns, leases, manages, or franchises approximately 190 own-brand hotels in 16 countries under the Casa Cook, Sunwing, Sunprime, Sunconnect, Sentido, and Smartline brands, as well as various partner hotels. In addition, the company operates an airline fleet of 94 aircrafts; and Academy of Excellence, which offers quality management training and consulting services to its partner hotels in areas, such as food presentation, housekeeping, and online reputation management, as well as offers ancillary products, including travel and booking insurance, airline meals and seat selection, extra luggage, private transfers, room upgrades, excursions, and entertainment while in destination. Further, it provides financing, tour operation, travel agency, and other travel services. The company offers its products through its Website thomascook.com.cn, as well as other third party e-commerce platforms. Thomas Cook Group plc was founded in 1841 and is based in London, United Kingdom.
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