Vail Resorts (NYSE:MTN – Get Free Report) and Brinker International (NYSE:EAT – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.
Volatility & Risk
Vail Resorts has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Brinker International has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Earnings & Valuation
This table compares Vail Resorts and Brinker International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vail Resorts | $2.84 billion | 1.91 | $147.54 million | $4.14 | 36.84 |
| Brinker International | $5.81 billion | 1.45 | $487.00 million | $10.89 | 18.55 |
Brinker International has higher revenue and earnings than Vail Resorts. Brinker International is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.9% of Vail Resorts shares are held by institutional investors. 1.2% of Vail Resorts shares are held by insiders. Comparatively, 1.2% of Brinker International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Vail Resorts and Brinker International’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% |
| Brinker International | 8.39% | 122.35% | 17.42% |
Analyst Ratings
This is a summary of recent ratings for Vail Resorts and Brinker International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vail Resorts | 3 | 7 | 5 | 0 | 2.13 |
| Brinker International | 0 | 5 | 17 | 2 | 2.88 |
Vail Resorts presently has a consensus price target of $150.00, indicating a potential downside of 1.65%. Brinker International has a consensus price target of $243.38, indicating a potential upside of 20.46%. Given Brinker International’s stronger consensus rating and higher probable upside, analysts clearly believe Brinker International is more favorable than Vail Resorts.
Summary
Brinker International beats Vail Resorts on 11 of the 15 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 Brinker International
Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.
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.
