Analyzing Extended Stay America (STAY) & Wynn Resorts (WYNN)

Extended Stay America (NYSE:STAY) and Wynn Resorts (NASDAQ:WYNN) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Dividends

Extended Stay America pays an annual dividend of $0.88 per share and has a dividend yield of 4.7%. Wynn Resorts pays an annual dividend of $3.00 per share and has a dividend yield of 2.1%. Wynn Resorts pays out 45.9% of its earnings in the form of a dividend. Extended Stay America has increased its dividend for 4 consecutive years. Extended Stay America is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

96.7% of Extended Stay America shares are held by institutional investors. Comparatively, 75.1% of Wynn Resorts shares are held by institutional investors. 0.7% of Extended Stay America shares are held by insiders. Comparatively, 1.0% of Wynn Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Extended Stay America and Wynn Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Extended Stay America N/A N/A N/A N/A N/A
Wynn Resorts $6.72 billion 2.27 $572.43 million $6.54 21.69

Wynn Resorts has higher revenue and earnings than Extended Stay America.

Profitability

This table compares Extended Stay America and Wynn Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Extended Stay America N/A N/A N/A
Wynn Resorts 8.70% 47.05% 5.64%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Extended Stay America and Wynn Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Extended Stay America 0 1 6 0 2.86
Wynn Resorts 0 7 10 0 2.59

Extended Stay America presently has a consensus target price of $21.93, suggesting a potential upside of 17.58%. Wynn Resorts has a consensus target price of $148.44, suggesting a potential upside of 4.67%. Given Extended Stay America’s stronger consensus rating and higher probable upside, research analysts plainly believe Extended Stay America is more favorable than Wynn Resorts.

Extended Stay America Company Profile

Extended Stay America, Inc., together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment. The company also relicenses Extended Stay America brand to unaffiliated third parties. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

Wynn Resorts Company Profile

Wynn Resorts, Limited owns and operates destination casino resorts. As of February 20, 2019, the company's Wynn Palace segment had approximately 424,000 square feet of casino space, which offered 320 table games and 1,041 slot machines, private gaming salons, and sky casinos; a luxury hotel towers with 1,706 guest rooms, suites, and villas; 13 food and beverage outlets; 106,000 square feet of retail space; 37,000 square feet of meeting and convention space; recreation and leisure facilities comprising a gondola ride, health club, spa, salon, and pool; and public attractions, such as performance lake and floral art displays. Its Wynn Macau segment had approximately Wynn Macau square feet of casino space that offers 317 table games and 810 slot machines, private gaming salons, sky casinos, and a poker pit; 2 luxury hotel with a total of 1,008 guest rooms and suites; 11 food and beverage outlets; 59,000 square feet of retail space; 31,000 square feet of meeting and convention space; recreation and leisure facilities, including a 2 health clubs, spas, a salon, and a pool; and Chinese zodiac-inspired ceiling along with gold prosperity tree and dragon of fortune attractions. The company's Las Vegas Operations segment had approximately 192,000 square feet of casino space, which provide 243 table games and 1,811 slot machines, private gaming salons, a sky casino, a poker room, and a race and sports book; 2 luxury hotel towers with a total of 4,748 guest rooms, suites, and villas; 33 food and beverage outlets; 160,000 square feet of retail space; 290,000 square feet of meeting and convention space; 3 nightclubs and a beach club; recreation and leisure facilities, including swimming pools, private cabanas, 2 full service spas and salons, and a wedding chapel; and Le Rêve-The Dream, a water-based theatrical production and a theater presenting entertainment productions and various headliner entertainment acts. The company was founded in 2002 and is based in Las Vegas, Nevada.

Receive News & Ratings for Extended Stay America Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Extended Stay America and related companies with MarketBeat.com's FREE daily email newsletter.