Portillo’s (NASDAQ:PTLO) and Wyndham Hotels & Resorts (NYSE:WH) Critical Contrast

Wyndham Hotels & Resorts (NYSE:WHGet Free Report) and Portillo’s (NASDAQ:PTLOGet Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Wyndham Hotels & Resorts and Portillo’s”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wyndham Hotels & Resorts $1.42 billion 3.62 $193.00 million $2.72 25.45
Portillo’s $748.75 million 0.38 $19.34 million $0.18 20.89

Wyndham Hotels & Resorts has higher revenue and earnings than Portillo’s. Portillo’s is trading at a lower price-to-earnings ratio than Wyndham Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Wyndham Hotels & Resorts and Portillo’s’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wyndham Hotels & Resorts 14.67% 74.22% 8.58%
Portillo’s 1.85% 2.78% 0.86%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Wyndham Hotels & Resorts and Portillo’s, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wyndham Hotels & Resorts 0 5 8 0 2.62
Portillo’s 1 10 2 0 2.08

Wyndham Hotels & Resorts presently has a consensus target price of $95.64, indicating a potential upside of 38.17%. Portillo’s has a consensus target price of $5.92, indicating a potential upside of 57.58%. Given Portillo’s’ higher possible upside, analysts clearly believe Portillo’s is more favorable than Wyndham Hotels & Resorts.

Institutional and Insider Ownership

93.5% of Wyndham Hotels & Resorts shares are owned by institutional investors. Comparatively, 98.3% of Portillo’s shares are owned by institutional investors. 2.3% of Wyndham Hotels & Resorts shares are owned by insiders. Comparatively, 6.3% of Portillo’s shares are owned 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.

Volatility & Risk

Wyndham Hotels & Resorts has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Portillo’s has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Summary

Wyndham Hotels & Resorts beats Portillo’s on 10 of the 14 factors compared between the two stocks.

About Wyndham Hotels & Resorts

(Get Free Report)

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.

About Portillo’s

(Get Free Report)

Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.

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