Marriott International (NASDAQ:MAR) & Oriental Land (OTCMKTS:OLCLY) Critical Review

Marriott International (NASDAQ:MAR) and Oriental Land (OTCMKTS:OLCLY) are both large-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Institutional and Insider Ownership

70.7% of Marriott International shares are owned by institutional investors. 10.7% of Marriott International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Marriott International and Oriental Land, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott International	0	12	7	2	2.52
Oriental Land	0	1	0	0	2.00

Marriott International currently has a consensus target price of $281.26, suggesting a potential upside of 6.08%. Given Marriott International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Marriott International is more favorable than Oriental Land.

Volatility and Risk

Marriott International has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Oriental Land has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares Marriott International and Oriental Land”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott International	$25.10 billion	2.87	$2.38 billion	$8.87	29.89
Oriental Land	$4.46 billion	9.87	$819.46 million	$0.52	47.02

Marriott International has higher revenue and earnings than Oriental Land. Marriott International is trading at a lower price-to-earnings ratio than Oriental Land, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Marriott International and Oriental Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott International	9.60%	-93.44%	10.14%
Oriental Land	18.27%	13.22%	8.95%

Dividends

Marriott International pays an annual dividend of $2.68 per share and has a dividend yield of 1.0%. Oriental Land pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Marriott International pays out 30.2% of its earnings in the form of a dividend. Oriental Land pays out 11.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Marriott International has increased its dividend for 3 consecutive years. Marriott International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Marriott International beats Oriental Land on 13 of the 18 factors compared between the two stocks.

About Marriott International

Marriott International, Inc. engages in operating, franchising, and licensing hotel, residential, timeshare, and other lodging properties worldwide. It operates its properties under the JW Marriott, The Ritz-Carlton, The Luxury Collection, W Hotels, St. Regis, EDITION, Bvlgari, Marriott Hotels, Sheraton, Westin, Autograph Collection, Renaissance Hotels, Le Méridien, Delta Hotels by Marriott, Tribute Portfolio, Gaylord Hotels, Design Hotels, Marriott Executive Apartments, Apartments by Marriott Bonvoy, Courtyard by Marriott, Fairfield by Marriott, Residence Inn by Marriott, SpringHill Suites by Marriott, Four Points by Sheraton, TownePlace Suites by Marriott, Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, Element Hotels, Protea Hotels by Marriott, City Express by Marriott, and St. Regis Longboat Key brand names, as well as operates residences, timeshares, and yachts. The company was founded in 1927 and is headquartered in Bethesda, Maryland.

About Oriental Land

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.