Reviewing Wyndham Hotels & Resorts (NYSE:WH) and Accor (OTCMKTS:ACRFF)

Wyndham Hotels & Resorts (NYSE:WH) and Accor (OTCMKTS:ACRFF) are both consumer cyclical companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.40 billion	4.28	$289.00 million	$2.82	26.17
Accor	N/A	N/A	N/A	$0.66	69.36

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	17.19%	41.83%	8.12%
Accor	N/A	N/A	N/A

Dividends

Wyndham Hotels & Resorts pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. Accor pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Wyndham Hotels & Resorts pays out 53.9% of its earnings in the form of a dividend. Accor pays out 60.2% 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. Wyndham Hotels & Resorts has increased its dividend for 2 consecutive years. Wyndham Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 34.9% of Accor shares are held by institutional investors. 2.8% of Wyndham Hotels & Resorts 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 ratings for Wyndham Hotels & Resorts and Accor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	0	6	0	3.00
Accor	0	0	0	0	N/A

Wyndham Hotels & Resorts currently has a consensus target price of $88.17, suggesting a potential upside of 19.48%. Given Wyndham Hotels & Resorts’ higher possible upside, equities research analysts clearly believe Wyndham Hotels & Resorts is more favorable than Accor.

Summary

Wyndham Hotels & Resorts beats Accor on 12 of the 13 factors compared between the two stocks.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc. operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising and Hotel Management segments. The Hotel Franchising segment licenses its lodging brands and provides related services to third-party hotel owners and others. The Hotel Management segment provides full-service international managed business services. It is also involved in the guest loyalty program business. The company's hotel brand portfolios include Super 8, Days Inn, Travelodge, Microtel, Howard Johnson, La Quinta, Ramada, Baymont, AmericInn, Wingate, Wyndham Alltra, Wyndham Garden, Ramada Encore, Hawthorn, Trademark Collection, TRYP, Wyndham, Wyndham Grand, WaterWalk Extended Stay by Wyndham, Dazzler, Esplendor, Dolce, Vienna House, and Registry Collection. Wyndham Hotels & Resorts, Inc. was incorporated in 2017 and is headquartered in Parsippany, New Jersey.

About Accor

Accor SA operates a chain of hotels worldwide. It operates through three segments: Management & Franchise; Services to Owners; and Hotel Assets & Others. The company owns, operates, manages, and franchises hotels. It also provides digital services to independent hotel operators through D-edge platform; Gekko solutions for leisure and travel industry and large companies; and concierge and customized services through John Paul, as well as hotel booking services; and other services in events, fine dining, and entertainment through Paris Society and Potel & Chabot platforms. In addition, the company offers distribution activities, such as private sales of hotel accommodation and luxury vacations through VeryChic platform; rental of private residences operated by onefinestay; and coworking spaces through Wojo and Mama Works. Further, it provides hotel management, procurement, cash management, IT, and advertising services, as well as various advisory services. Accor SA was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.