Contrasting Marriott Vacations Worldwide (NYSE:VAC) & DoorDash (NASDAQ:DASH)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	-6.47%	12.27%	2.68%
DoorDash	5.29%	8.48%	4.37%

Risk and Volatility

Marriott Vacations Worldwide has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, DoorDash has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.

Insider and Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are held by institutional investors. Comparatively, 90.6% of DoorDash shares are held by institutional investors. 13.3% of Marriott Vacations Worldwide shares are held by insiders. Comparatively, 44.9% of DoorDash shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Marriott Vacations Worldwide and DoorDash, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	3	2	7	1	2.46
DoorDash	1	8	26	1	2.75

Marriott Vacations Worldwide currently has a consensus target price of $106.27, suggesting a potential upside of 5.33%. DoorDash has a consensus target price of $257.47, suggesting a potential upside of 36.03%. Given DoorDash’s stronger consensus rating and higher possible upside, analysts plainly believe DoorDash is more favorable than Marriott Vacations Worldwide.

Earnings and Valuation

This table compares Marriott Vacations Worldwide and DoorDash”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$5.03 billion	0.69	-$308.00 million	($9.74)	-10.36
DoorDash	$13.72 billion	5.98	$935.00 million	$1.91	99.09

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

Summary

DoorDash beats Marriott Vacations Worldwide on 13 of the 14 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 DoorDash

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.