Financial Comparison: Marriott International (MAR) & The Competition

Marriott International (NASDAQ:MAR) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its rivals? We will compare Marriott International to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Risk and Volatility

Marriott International has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Marriott International’s rivals have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Dividends

Marriott International pays an annual dividend of $2.92 per share and has a dividend yield of 0.7%. Marriott International pays out 29.1% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 39.1% of their earnings in the form of a dividend. Marriott International has increased its dividend for 3 consecutive years.

Valuation and Earnings

This table compares Marriott International and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Marriott International	$27.42 billion	$2.60 billion	41.93
Marriott International Competitors	$3.72 billion	$250.18 million	-162.02

Marriott International has higher revenue and earnings than its rivals. Marriott International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Marriott International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott International	9.68%	-69.94%	10.96%
Marriott International Competitors	8.52%	-40.63%	2.09%

Insider & Institutional Ownership

70.7% of Marriott International shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 11.4% of Marriott International shares are owned by insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Marriott International and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott International	1	12	12	2	2.56
Marriott International Competitors	3807	17298	25617	906	2.50

Marriott International currently has a consensus target price of $399.04, suggesting a potential downside of 5.01%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.61%. Given Marriott International’s rivals higher possible upside, analysts clearly believe Marriott International has less favorable growth aspects than its rivals.

Summary

Marriott International beats its rivals on 9 of the 15 factors compared.

About Marriott International

Marriott International, Inc. engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St. Regis Longboat Key brand names, as well as operates residences, timeshares, and yachts. The company was founded in 1927 and is headquartered in Bethesda, Maryland.