Comparing Travel + Leisure (NYSE:TNL) & Lucky Strike Entertainment (NYSE:LUCK)

Travel + Leisure (NYSE:TNL) and Lucky Strike Entertainment (NYSE:LUCK) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Travel + Leisure and Lucky Strike Entertainment, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	1	2	7	0	2.60
Lucky Strike Entertainment	0	2	3	0	2.60

Travel + Leisure currently has a consensus price target of $59.20, indicating a potential upside of 17.82%. Lucky Strike Entertainment has a consensus price target of $11.60, indicating a potential upside of 17.29%. Given Travel + Leisure’s higher possible upside, equities research analysts plainly believe Travel + Leisure is more favorable than Lucky Strike Entertainment.

Profitability

This table compares Travel + Leisure and Lucky Strike Entertainment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	10.77%	-46.83%	6.14%
Lucky Strike Entertainment	0.21%	-23.31%	1.36%

Dividends

Travel + Leisure pays an annual dividend of $2.24 per share and has a dividend yield of 4.5%. Lucky Strike Entertainment pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. Travel + Leisure pays out 37.4% of its earnings in the form of a dividend. Lucky Strike Entertainment pays out -314.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Travel + Leisure has increased its dividend for 5 consecutive years. Travel + Leisure is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Travel + Leisure and Lucky Strike Entertainment”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$3.88 billion	0.86	$411.00 million	$5.99	8.39
Lucky Strike Entertainment	$1.15 billion	1.20	-$83.58 million	($0.07)	-141.29

Travel + Leisure has higher revenue and earnings than Lucky Strike Entertainment. Lucky Strike Entertainment is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Travel + Leisure has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Lucky Strike Entertainment has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

87.5% of Travel + Leisure shares are held by institutional investors. Comparatively, 68.1% of Lucky Strike Entertainment shares are held by institutional investors. 3.8% of Travel + Leisure shares are held by insiders. Comparatively, 79.9% of Lucky Strike Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Travel + Leisure beats Lucky Strike Entertainment on 12 of the 16 factors compared between the two stocks.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

About Lucky Strike Entertainment

Lucky Strike Entertainment Corp. engages in operating bowling centers. It offers entertainment concepts with lounge seating, arcades, food and beverage offerings, and hosting and overseeing professional and non-professional bowling tournaments and related broadcasting. The company was founded by Thomas F. Shannon in 1997 and is headquartered in Mechanicsville, VA.