Critical Survey: Brinker International (NYSE:EAT) & Vail Resorts (NYSE:MTN)

Brinker International (NYSE:EAT) and Vail Resorts (NYSE:MTN) are both mid-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Risk and Volatility

Brinker International has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Vail Resorts has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares Brinker International and Vail Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$5.81 billion	1.42	$487.00 million	$10.89	18.11
Vail Resorts	$2.84 billion	1.89	$147.54 million	$4.14	36.45

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

Profitability

This table compares Brinker International and Vail Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brinker International	8.39%	122.35%	17.42%
Vail Resorts	5.20%	22.82%	2.61%

Analyst Recommendations

This is a summary of current ratings and target prices for Brinker International and Vail Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	0	4	17	3	2.96
Vail Resorts	3	9	5	0	2.12

Brinker International currently has a consensus target price of $248.76, suggesting a potential upside of 26.16%. Vail Resorts has a consensus target price of $150.00, suggesting a potential downside of 0.60%. Given Brinker International’s stronger consensus rating and higher probable upside, analysts clearly believe Brinker International is more favorable than Vail Resorts.

Summary

Brinker International beats Vail Resorts on 11 of the 15 factors compared between the two stocks.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

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.