Intercontinental Hotels Group (NYSE: IHG) and Marriott International (NASDAQ:MAR) are both large-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitabiliy and valuation.
Earnings and Valuation
This table compares Intercontinental Hotels Group and Marriott International’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Intercontinental Hotels Group | $1.72 billion | 6.17 | $757.00 million | N/A | N/A |
| Marriott International | $4.02 billion | 9.68 | $2.25 billion | $2.78 | 36.95 |
Marriott International has higher revenue and earnings than Intercontinental Hotels Group.
Volatility and Risk
Intercontinental Hotels Group has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
Dividends
Intercontinental Hotels Group pays an annual dividend of $0.96 per share and has a dividend yield of 1.7%. Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. Marriott International pays out 47.5% of its earnings in the form of a dividend. Marriott International has increased its dividend for 4 consecutive years.
Insider & Institutional Ownership
6.8% of Intercontinental Hotels Group shares are owned by institutional investors. Comparatively, 67.0% of Marriott International shares are owned by institutional investors. 17.1% of Marriott International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Intercontinental Hotels Group and Marriott International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intercontinental Hotels Group | 2 | 5 | 1 | 0 | 1.88 |
| Marriott International | 1 | 6 | 8 | 0 | 2.47 |
Intercontinental Hotels Group presently has a consensus target price of $44.00, suggesting a potential downside of 21.88%. Marriott International has a consensus target price of $96.50, suggesting a potential downside of 6.05%. Given Marriott International’s stronger consensus rating and higher probable upside, analysts clearly believe Marriott International is more favorable than Intercontinental Hotels Group.
Profitability
This table compares Intercontinental Hotels Group and Marriott International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Intercontinental Hotels Group | N/A | N/A | N/A |
| Marriott International | 4.91% | 38.10% | 6.17% |
Summary
Marriott International beats Intercontinental Hotels Group on 14 of the 16 factors compared between the two stocks.
About Intercontinental Hotels Group
InterContinental Hotels Group PLC is a hotel company. The Company franchises its brands to, and manages hotels on behalf of, third-party hotel owners. Its segments include The Americas; Europe; Asia, Middle East and Africa (AMEA); Greater China, and Central. It operates a portfolio of hotel brands, including InterContinental, HUALUXE, Kimpton, Crowne Plaza, Hotel Indigo, EVEN Hotels, Holiday Inn, Holiday Inn Express, Staybridge Suites Hotels, Holiday Inn Resort, Holiday Inn Club Vacations and Candlewood Suites Hotels. As of December 31, 2016, The Americas pipeline totaled 945 hotels (102,451 rooms). As of December 31, 2016, the Europe pipeline totaled 137 hotels (23,954 rooms). As of December 31, 2016, the AMEA pipeline totaled 149 hotels (39,643 rooms). As of December 31, 2016, the Greater China pipeline totaled 239 hotels (64,028 rooms). As of April 21, 2017, it had 5,200 hotels and 777,000 rooms in its system. As of April 21, 2017, it operated in over 100 countries globally.
About Marriott International
Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.
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