Vail Resorts (NYSE:MTN – Get Free Report) and Texas Roadhouse (NASDAQ:TXRH – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.
Profitability
This table compares Vail Resorts and Texas Roadhouse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vail Resorts | 5.20% | 22.82% | 2.61% |
| Texas Roadhouse | 6.63% | 27.20% | 11.75% |
Volatility and Risk
Vail Resorts has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Texas Roadhouse has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vail Resorts | $2.84 billion | 1.83 | $147.54 million | $4.14 | 35.18 |
| Texas Roadhouse | $5.88 billion | 1.80 | $405.55 million | $6.25 | 25.84 |
Texas Roadhouse has higher revenue and earnings than Vail Resorts. Texas Roadhouse is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.
Dividends
Vail Resorts pays an annual dividend of $8.88 per share and has a dividend yield of 6.1%. Texas Roadhouse pays an annual dividend of $3.00 per share and has a dividend yield of 1.9%. Vail Resorts pays out 214.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Texas Roadhouse pays out 48.0% of its earnings in the form of a dividend. Vail Resorts has raised its dividend for 3 consecutive years and Texas Roadhouse has raised its dividend for 6 consecutive years.
Institutional and Insider Ownership
94.9% of Vail Resorts shares are owned by institutional investors. Comparatively, 94.8% of Texas Roadhouse shares are owned by institutional investors. 1.2% of Vail Resorts shares are owned by company insiders. Comparatively, 0.5% of Texas Roadhouse shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Vail Resorts and Texas Roadhouse, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vail Resorts | 3 | 7 | 4 | 0 | 2.07 |
| Texas Roadhouse | 0 | 11 | 10 | 2 | 2.61 |
Vail Resorts presently has a consensus target price of $145.25, suggesting a potential downside of 0.27%. Texas Roadhouse has a consensus target price of $209.76, suggesting a potential upside of 29.88%. Given Texas Roadhouse’s stronger consensus rating and higher probable upside, analysts clearly believe Texas Roadhouse is more favorable than Vail Resorts.
Summary
Texas Roadhouse beats Vail Resorts on 13 of the 18 factors compared between the two stocks.
About Vail Resorts
Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.
About Texas Roadhouse
Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.
Receive News & Ratings for Vail Resorts Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Vail Resorts and related companies with MarketBeat.com's FREE daily email newsletter.
