Analyzing Eldorado Resorts (NASDAQ:ERI) and Wyndham Hotels & Resorts (WH)

Eldorado Resorts (NASDAQ:ERI) and Wyndham Hotels & Resorts (NYSE:WH) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Eldorado Resorts and Wyndham Hotels & Resorts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Resorts $2.06 billion 1.88 $95.24 million $1.38 36.14
Wyndham Hotels & Resorts $1.87 billion 2.78 $162.00 million $2.71 19.72

Wyndham Hotels & Resorts has lower revenue, but higher earnings than Eldorado Resorts. Wyndham Hotels & Resorts is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

85.7% of Eldorado Resorts shares are held by institutional investors. Comparatively, 91.4% of Wyndham Hotels & Resorts shares are held by institutional investors. 1.5% of Eldorado Resorts shares are held by insiders. Comparatively, 1.9% of Wyndham Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Wyndham Hotels & Resorts pays an annual dividend of $1.16 per share and has a dividend yield of 2.2%. Eldorado Resorts does not pay a dividend. Wyndham Hotels & Resorts pays out 42.8% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Eldorado Resorts and Wyndham Hotels & Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Resorts 0 1 5 0 2.83
Wyndham Hotels & Resorts 0 0 8 0 3.00

Eldorado Resorts currently has a consensus target price of $55.67, indicating a potential upside of 11.60%. Wyndham Hotels & Resorts has a consensus target price of $71.29, indicating a potential upside of 33.37%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Wyndham Hotels & Resorts is more favorable than Eldorado Resorts.

Profitability

This table compares Eldorado Resorts and Wyndham Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Resorts 5.00% 11.41% 2.34%
Wyndham Hotels & Resorts 7.03% 18.80% 5.37%

Summary

Wyndham Hotels & Resorts beats Eldorado Resorts on 12 of the 15 factors compared between the two stocks.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc. operates as a gaming and hospitality company in the United States. It owns and operates Eldorado Resort Casino Reno, a hotel, casino, and entertainment facility; Silver Legacy Resort Casino, a themed hotel and casino; Circus Circus Reno, a hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also operates Isle Casino Hotel—Black Hawk and Lady Luck Casino—Black Hawk land-based casinos; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a single-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg and Isle of Capri Casino Kansas City dockside casinos; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino, and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; and Lady Luck Casino Nemacolin, a casino property. In addition, it operates Tropicana Casino and Resort, Atlantic City, a casino and resort; Tropicana Evansville, a casino hotel and entertainment complex; Lumière Place Casino, Tropicana Laughlin Hotel and Casino, MontBleu Casino Resort & Spa, and Grand Victoria Casino; Trop Casino Greenville, a landside gaming facility; Belle of Baton Rouge Casino & Hotel, a dockside riverboat; and Racelinebet.com. As of December 31, 2018, it owned 28 gaming facilities with approximately 30,000 slot machines and video lottery terminals; 800 table games; and 12,600 hotel rooms. The company was founded in 1973 and is based in Reno, Nevada.

Wyndham Hotels & Resorts Company Profile

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor worldwide. The company licenses its hotel brands, including Super 8, Days Inn, Ramada, Microtel Inn & Suites, La Quinta, Wingate, AmericInn, Hawthorn Suites, The Trademark Collection, and Wyndham to hotel owners in approximately 80 countries. Its Hotel Franchising segments licenses its lodging brands and provides related services to third-party hotel owners and others. The company's Hotel Management segment provides hotel management services for full-service and limited service hotels. Wyndham Hotels & Resorts, Inc. operates a portfolio of 20 hotel brands with approximately 9,200 franchised hotels with 810,000 rooms; and manages hotels, including 438 third-party-owned properties and 2 owned properties. It is also involved in the loyalty program business. The company was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

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