Critical Analysis: Dine Brands Global (NYSE:DIN) versus MakeMyTrip (NASDAQ:MMYT)

MakeMyTrip (NASDAQ:MMYT) and Dine Brands Global (NYSE:DIN) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for MakeMyTrip and Dine Brands Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MakeMyTrip	0	2	5	0	2.71
Dine Brands Global	0	9	0	0	2.00

MakeMyTrip currently has a consensus target price of $72.25, indicating a potential upside of 70.36%. Dine Brands Global has a consensus target price of $34.00, indicating a potential downside of 2.52%. Given MakeMyTrip’s stronger consensus rating and higher probable upside, analysts clearly believe MakeMyTrip is more favorable than Dine Brands Global.

Earnings and Valuation

This table compares MakeMyTrip and Dine Brands Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MakeMyTrip	$1.04 billion	3.82	$51.80 million	$0.20	212.05
Dine Brands Global	$900.00 million	0.49	$17.10 million	$0.47	74.21

MakeMyTrip has higher revenue and earnings than Dine Brands Global. Dine Brands Global is trading at a lower price-to-earnings ratio than MakeMyTrip, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

51.9% of MakeMyTrip shares are held by institutional investors. Comparatively, 92.8% of Dine Brands Global shares are held by institutional investors. 10.3% of MakeMyTrip shares are held by company insiders. Comparatively, 6.7% of Dine Brands Global shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares MakeMyTrip and Dine Brands Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MakeMyTrip	3.23%	-632.52%	8.31%
Dine Brands Global	0.75%	-20.34%	3.17%

Risk and Volatility

MakeMyTrip has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Dine Brands Global has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Summary

MakeMyTrip beats Dine Brands Global on 11 of the 14 factors compared between the two stocks.

About MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.

About Dine Brands Global

Dine Brands Global, Inc., together with its subsidiaries, owns, franchises, and operates restaurants in the United States and internationally. The company operates through six segments: Applebee's Franchise Operations, International House of Pancakes (IHOP) Franchise Solutions, Fuzzy's franchise operations, Rental Operations, Financing Operations, and Company-Operated Restaurant Operations. It owns and franchises three restaurant concepts, including Applebee's Neighborhood Grill + Bar within the casual dining category; and IHOP in the family dining category of the restaurant industry; Fuzzy's Taco Shop within the fast-casual dining category. In addition, its Applebee's restaurants offer American fare with drinks and local draft beers; IHOP restaurants provide full table services, food and beverage; and Fuzzy's Taco Shop offers baja-style mexican food like baja tacos, chips and queso, guacamole and salsa made in house, and a full bar including margaritas, and cold draft beer. The company was formerly known as DineEquity, Inc. and changed its name to Dine Brands Global, Inc. in February 2018. Dine Brands Global, Inc. was founded in 1958 and is headquartered in Pasadena, California.