Comparing Planet Fitness (NYSE:PLNT) & Marriott Vacations Worldwide (NYSE:VAC)

Marriott Vacations Worldwide (NYSE:VAC) and Planet Fitness (NYSE:PLNT) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Marriott Vacations Worldwide and Planet Fitness’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	3.44%	11.44%	2.83%
Planet Fitness	15.97%	-126.58%	8.08%

Institutional and Insider Ownership

89.5% of Marriott Vacations Worldwide shares are owned by institutional investors. Comparatively, 95.5% of Planet Fitness shares are owned by institutional investors. 1.6% of Marriott Vacations Worldwide shares are owned by company insiders. Comparatively, 5.9% of Planet Fitness shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Marriott Vacations Worldwide has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Planet Fitness has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Marriott Vacations Worldwide and Planet Fitness”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$4.97 billion	0.38	$218.00 million	$4.46	12.22
Planet Fitness	$1.18 billion	7.70	$172.04 million	$2.45	44.60

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

Analyst Ratings

This is a breakdown of current recommendations for Marriott Vacations Worldwide and Planet Fitness, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	4	1	4	0	2.00
Planet Fitness	0	3	12	1	2.88

Marriott Vacations Worldwide presently has a consensus target price of $63.38, suggesting a potential upside of 16.31%. Planet Fitness has a consensus target price of $117.23, suggesting a potential upside of 7.29%. Given Marriott Vacations Worldwide’s higher possible upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Planet Fitness.

Summary

Planet Fitness beats Marriott Vacations Worldwide on 9 of the 15 factors compared between the two stocks.

About Marriott Vacations Worldwide

Marriott Vacations Worldwide Corporation, a vacation company, develops, markets, sells, and manages vacation ownership and related businesses, products, and services in the United States and internationally. It operates through two segments, Vacation Ownership and Exchange & Third-Party Management. The company manages vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Vacation Club, and Marriott Vacation Club Pulse brands. It develops, markets, and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand; and holds right to develop, market, and sell ownership residential products under The Ritz-Carlton Residences brand. In addition, the company offers exchange networks and membership programs, as well as provision of management services to other resorts and lodging properties through Interval International, and Aqua-Aston business brands. Further, it provides financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. The company sells its upscale tier vacation ownership products primarily through a network of resort-based sales centers and off-site sales locations. The company was founded in 1984 and is headquartered in Orlando, Florida.

About Planet Fitness

Planet Fitness, Inc., together with its subsidiaries, franchises and operates fitness centers under the Planet Fitness brand. The company operates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The company is involved in franchising business in the United States, Puerto Rico, Canada, Panama, Mexico, and Australia. It engages in the sale of fitness equipment to franchisee-owned stores in the United States, Canada, and Mexico. In addition, the company operates corporate-owned stores in the United States and Canada. Planet Fitness, Inc. was founded in 1992 and is headquartered in Hampton, New Hampshire.