Marcus & Millichap (NYSE: MMI) and Interval Leisure Group (NASDAQ:ILG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
This is a breakdown of current ratings and price targets for Marcus & Millichap and Interval Leisure Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Marcus & Millichap||0||2||2||0||2.50|
|Interval Leisure Group||0||1||6||0||2.86|
This table compares Marcus & Millichap and Interval Leisure Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Marcus & Millichap||7.16%||21.35%||15.35%|
|Interval Leisure Group||9.35%||8.41%||3.95%|
Valuation and Earnings
This table compares Marcus & Millichap and Interval Leisure Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Marcus & Millichap||$719.70 million||1.87||$51.52 million||$1.62||21.75|
|Interval Leisure Group||$1.79 billion||2.30||$168.00 million||$1.10||30.05|
Interval Leisure Group has higher revenue and earnings than Marcus & Millichap. Marcus & Millichap is trading at a lower price-to-earnings ratio than Interval Leisure Group, indicating that it is currently the more affordable of the two stocks.
Interval Leisure Group pays an annual dividend of $0.70 per share and has a dividend yield of 2.1%. Marcus & Millichap does not pay a dividend. Interval Leisure Group pays out 63.6% of its earnings in the form of a dividend.
Risk & Volatility
Marcus & Millichap has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Interval Leisure Group has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.
Insider and Institutional Ownership
45.0% of Marcus & Millichap shares are owned by institutional investors. Comparatively, 84.1% of Interval Leisure Group shares are owned by institutional investors. 50.1% of Marcus & Millichap shares are owned by company insiders. Comparatively, 2.0% of Interval Leisure Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Interval Leisure Group beats Marcus & Millichap on 10 of the 16 factors compared between the two stocks.
Marcus & Millichap Company Profile
Marcus & Millichap, Inc., a brokerage firm, provides investment brokerage and financing services to sellers and buyers of commercial real estate in the United States and Canada. The company offers commercial real estate investment sales, financing, research, and advisory services for multifamily, retail, office, and industrial properties, as well as hospitality, self-storage, seniors housing, land, and manufactured housing properties. It also operates as a broker of debt financing for commercial properties. In addition, the company provides various ancillary services, including research, and advisory and consulting services to developers, lenders, owners, real estate investment trusts, high net worth individuals, pension fund advisors, and other institutions. Marcus & Millichap, Inc. was founded in 1971 and is headquartered in Calabasas, California.
Interval Leisure Group Company Profile
ILG, Inc., together with its subsidiaries, provides professional vacation services in the United States and internationally. The company operates in two segments, Vacation Ownership (VO), and Exchange and Rental. The VO segment engages in the sale, marketing, financing, and development of vacation ownership interests; and management of vacation ownership resorts, as well as in the provision of related services to owners and homeowners' associations (HOAs). The Exchange and Rental segment offers access to vacation accommodations and other travel-related transactions and services to leisure travelers by providing vacation exchange and rental services. This segment also provides leisure and travel related products and services to owners of vacation interests and others primarily through various membership programs, as well as related services to resort developer clients and HOAs; and allows owners of vacation interests to exchange their occupancy rights for alternative accommodations at another resort and/or occupancy period. In addition, this segment offers vacation property rental services for condominium owners, hotel owners, and HOAs. As of December 31, 2017, it operated a total of 43 resorts within Vistana Signature Experiences and Hyatt Vacation Ownership businesses; and managed approximately 250 resorts, vacation ownership properties, and/or their associations. The company was formerly known as Interval Leisure Group, Inc. and changed its name to ILG, Inc. in October 2016. ILG, Inc. was founded in 1976 and is headquartered in Miami, Florida.
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