Golden Entertainment (NASDAQ: GDEN) and Marriot Vacations Worldwide Corporation (NYSE:VAC) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitabiliy, analyst recommendations and valuation.
Marriot Vacations Worldwide Corporation pays an annual dividend of $1.40 per share and has a dividend yield of 1.1%. Golden Entertainment does not pay a dividend. Marriot Vacations Worldwide Corporation pays out 26.7% of its earnings in the form of a dividend. Golden Entertainment has raised its dividend for 2 consecutive years.
This table compares Golden Entertainment and Marriot Vacations Worldwide Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marriot Vacations Worldwide Corporation||7.76%||16.04%||6.08%|
This is a summary of current ratings and price targets for Golden Entertainment and Marriot Vacations Worldwide Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marriot Vacations Worldwide Corporation||0||2||5||0||2.71|
Golden Entertainment presently has a consensus target price of $13.00, suggesting a potential downside of 36.52%. Marriot Vacations Worldwide Corporation has a consensus target price of $110.86, suggesting a potential downside of 12.55%. Given Marriot Vacations Worldwide Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Marriot Vacations Worldwide Corporation is more favorable than Golden Entertainment.
Risk & Volatility
Golden Entertainment has a beta of 0.06, indicating that its share price is 94% less volatile than the S&P 500. Comparatively, Marriot Vacations Worldwide Corporation has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
Insider and Institutional Ownership
28.4% of Golden Entertainment shares are owned by institutional investors. Comparatively, 79.1% of Marriot Vacations Worldwide Corporation shares are owned by institutional investors. 49.7% of Golden Entertainment shares are owned by company insiders. Comparatively, 3.3% of Marriot Vacations Worldwide Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Golden Entertainment and Marriot Vacations Worldwide Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Golden Entertainment||$418.82 million||1.09||$44.95 million||$0.85||24.09|
|Marriot Vacations Worldwide Corporation||$1.30 billion||2.65||$255.26 million||$5.24||24.19|
Marriot Vacations Worldwide Corporation has higher revenue and earnings than Golden Entertainment. Golden Entertainment is trading at a lower price-to-earnings ratio than Marriot Vacations Worldwide Corporation, indicating that it is currently the more affordable of the two stocks.
Marriot Vacations Worldwide Corporation beats Golden Entertainment on 13 of the 17 factors compared between the two stocks.
Golden Entertainment Company Profile
Golden Entertainment, Inc. is a group of gaming companies. The Company focuses on distributed gaming, including tavern gaming, and casino and resort operations. It operates through two segments: Distributed Gaming and Casinos. Its Distributed Gaming segment involves the installation, maintenance and operation of gaming and amusement devices in certain strategic, high-traffic, non-casino locations (such as grocery stores, convenience stores, restaurants, bars, taverns, saloons and liquor stores) in Nevada and Montana, and the operation of traditional, branded taverns targeting local patrons, primarily in the greater Las Vegas, Nevada metropolitan area. As of December 31, 2016, its distributed gaming operations consisted of approximately 10,400 gaming devices in approximately 960 locations. Its Casinos segment consists of the Rocky Gap Casino Resort in Flintstone, Maryland and three casinos in Pahrump, Nevada: Pahrump Nugget Hotel Casino, Gold Town Casino and Lakeside Casino & RV Park.
Marriot Vacations Worldwide Corporation Company Profile
Marriott Vacations Worldwide Corporation focuses on vacation ownership, based on number of owners, number of resorts and revenues. The Company is an exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The Company operates through three segments North America, Europe and Asia Pacific. In the North America segment, it develops, markets, sells and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. Its Europe segment is engaged in selling its existing projects and managing existing resorts. Its Asia Pacific segment, it develops, markets, sells and manages two points-based programs that it designed to appeal to the vacation preferences of the market, Marriott Vacation Club, Asia Pacific and Marriott Vacation Club Destinations, Australia, as well as a weeks-based right-to-use product.
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