Greggs (OTCMKTS:GGGSF – Get Free Report) and Marriott Vacations Worldwide (NYSE:VAC – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Insider & Institutional Ownership
42.1% of Greggs shares are held by institutional investors. Comparatively, 89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 13.3% of Marriott Vacations Worldwide shares are held by company 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.
Profitability
This table compares Greggs and Marriott Vacations Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Greggs | N/A | N/A | N/A |
| Marriott Vacations Worldwide | -6.47% | 12.27% | 2.68% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Greggs | 1 | 2 | 0 | 0 | 1.67 |
| Marriott Vacations Worldwide | 3 | 1 | 7 | 1 | 2.50 |
Marriott Vacations Worldwide has a consensus price target of $99.30, indicating a potential downside of 17.70%. Given Marriott Vacations Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Greggs.
Dividends
Greggs pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Marriott Vacations Worldwide pays an annual dividend of $3.20 per share and has a dividend yield of 2.7%. Greggs pays out 91.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marriott Vacations Worldwide pays out -32.9% of its earnings in the form of a dividend. Marriott Vacations Worldwide has raised its dividend for 1 consecutive years. Marriott Vacations Worldwide is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Greggs and Marriott Vacations Worldwide”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Greggs | N/A | N/A | N/A | $0.21 | 114.30 |
| Marriott Vacations Worldwide | $5.16 billion | 0.80 | -$308.00 million | ($9.74) | -12.39 |
Greggs has higher earnings, but lower revenue than Marriott Vacations Worldwide. Marriott Vacations Worldwide is trading at a lower price-to-earnings ratio than Greggs, indicating that it is currently the more affordable of the two stocks.
Summary
Marriott Vacations Worldwide beats Greggs on 12 of the 15 factors compared between the two stocks.
About Greggs
Greggs plc operates as a food-on-the-go retailer in the United Kingdom. It offers a range of fresh bakery products, sandwiches, and drinks. The company sells products to franchise and wholesale partners for sale in their own outlets. It is also involved in the property holding, non-trading, and trustee businesses. The company also operates through its own shops. Greggs plc was founded in 1939 and is headquartered in Newcastle upon Tyne, the United Kingdom.
About Marriott Vacations Worldwide
Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.
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