Whitbread (OTCMKTS:WTBCF) versus Hyatt Hotels (NYSE:H) Critical Contrast

Whitbread (OTCMKTS:WTBCF) and Hyatt Hotels (NYSE:H) are both consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Whitbread and Hyatt Hotels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Whitbread	0	0	0	0	N/A
Hyatt Hotels	0	12	7	0	2.37

Hyatt Hotels has a consensus price target of $148.47, indicating a potential downside of 2.03%. Given Hyatt Hotels’ higher probable upside, analysts clearly believe Hyatt Hotels is more favorable than Whitbread.

Profitability

This table compares Whitbread and Hyatt Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Whitbread	N/A	N/A	N/A
Hyatt Hotels	14.55%	10.25%	3.03%

Dividends

Whitbread pays an annual dividend of $0.69 per share and has a dividend yield of 1.7%. Hyatt Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.4%. Whitbread pays out 36.7% of its earnings in the form of a dividend. Hyatt Hotels pays out 9.3% 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.

Institutional and Insider Ownership

38.4% of Whitbread shares are held by institutional investors. Comparatively, 71.0% of Hyatt Hotels shares are held by institutional investors. 23.5% of Hyatt Hotels shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Whitbread and Hyatt Hotels”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Whitbread	N/A	N/A	N/A	$1.87	21.27
Hyatt Hotels	$6.70 billion	2.29	$220.00 million	$6.44	23.53

Hyatt Hotels has higher revenue and earnings than Whitbread. Whitbread is trading at a lower price-to-earnings ratio than Hyatt Hotels, indicating that it is currently the more affordable of the two stocks.

Summary

Hyatt Hotels beats Whitbread on 11 of the 12 factors compared between the two stocks.

About Whitbread

Whitbread plc operates hotels and restaurants in the United Kingdom, Germany, and internationally. It operates hotels under the Premier Inn, ZIP by Premier Inn, and hub by Premier Inn brands. The company operates restaurants under the Brewers Fayre, Beefeater, Cookhouse & Pub, Bar+Block Steakhouse, Thyme, and Table Table brands in the United Kingdom. Whitbread plc was founded in 1742 and is headquartered in Dunstable, the United Kingdom.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.