Tropicana Entertainment (OTCMKTS:TPCA) and Marriott International (NASDAQ:MAR) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
Risk & Volatility
Tropicana Entertainment has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Institutional & Insider Ownership
63.4% of Marriott International shares are owned by institutional investors. 83.9% of Tropicana Entertainment shares are owned by insiders. Comparatively, 13.0% of Marriott International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Marriott International pays an annual dividend of $1.64 per share and has a dividend yield of 1.5%. Tropicana Entertainment does not pay a dividend. Marriott International pays out 37.6% of its earnings in the form of a dividend. Marriott International has increased its dividend for 7 consecutive years.
Earnings and Valuation
This table compares Tropicana Entertainment and Marriott International’s gross revenue, earnings per share and valuation.
Marriott International has higher revenue and earnings than Tropicana Entertainment.
This table compares Tropicana Entertainment and Marriott International’s net margins, return on equity and return on assets.
This is a summary of recent ratings and price targets for Tropicana Entertainment and Marriott International, as provided by MarketBeat.
Marriott International has a consensus price target of $137.20, indicating a potential upside of 27.68%.
Marriott International beats Tropicana Entertainment on 10 of the 12 factors compared between the two stocks.
About Tropicana Entertainment
Tropicana Entertainment Inc. owns and operates casino and entertainment properties in the United States. It operates two casinos in Nevada; and one casino in each of Indiana, Louisiana, Mississippi, Missouri, and New Jersey, as well as a hotel, timeshare, and casino resort property located on the island of Aruba. As of December 31, 2017, the company properties included approximately 399,000 square feet of gaming space with approximately 8,000 slot machines, 270 table games and 5,800 hotel rooms. The company is headquartered in Las Vegas, Nevada. Tropicana Entertainment Inc. is a subsidiary of Icahn Enterprises Holdings L.P.
About Marriott International
Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through three segments: North American Full-Service, North American Limited-Service, and Asia Pacific. It operates its properties under the JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Westin, Renaissance, Le Méridien, Autograph Collection, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, Marriott Vacation Club, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of October 9, 2018, it operated approximately 6,700 properties under 30 hotel brands in 130 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.