Head to Head Review: Tropicana Entertainment (TPCA) vs. Marriott International (MAR)

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Tropicana Entertainment (OTCMKTS:TPCA) and Marriott International (NASDAQ:MAR) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares Tropicana Entertainment and Marriott International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tropicana Entertainment $898.19 million 0.00 $49.84 million N/A N/A
Marriott International $22.89 billion 1.64 $1.37 billion $4.36 25.24

Marriott International has higher revenue and earnings than Tropicana Entertainment.

Analyst Recommendations

This is a breakdown of current ratings for Tropicana Entertainment and Marriott International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tropicana Entertainment 0 0 0 0 N/A
Marriott International 0 9 6 0 2.40

Marriott International has a consensus target price of $137.57, indicating a potential upside of 25.01%.

Profitability

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

Net Margins Return on Equity Return on Assets
Tropicana Entertainment 5.77% 5.62% 4.35%
Marriott International 7.95% 68.01% 8.82%

Insider & Institutional Ownership

63.3% of Marriott International shares are held by institutional investors. 83.9% of Tropicana Entertainment shares are held by company insiders. Comparatively, 13.0% of Marriott International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Tropicana Entertainment has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Marriott International has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Dividends

Marriott International pays an annual dividend of $1.64 per share and has a dividend yield of 1.5%. Tropicana Entertainment does not pay a dividend. Marriott International pays out 37.6% of its earnings in the form of a dividend. Marriott International has increased its dividend for 8 consecutive years.

Summary

Marriott International beats Tropicana Entertainment on 10 of the 12 factors compared between the two stocks.

About Tropicana Entertainment

Tropicana Entertainment Inc. owns and operates casino and entertainment properties in the United States. It operates two casinos in Nevada; and one casino in each of Indiana, Louisiana, Mississippi, Missouri, and New Jersey, as well as a hotel, timeshare, and casino resort property located on the island of Aruba. As of December 31, 2017, the company properties included approximately 399,000 square feet of gaming space with approximately 8,000 slot machines, 270 table games and 5,800 hotel rooms. The company is headquartered in Las Vegas, Nevada. Tropicana Entertainment Inc. is a subsidiary of Icahn Enterprises Holdings L.P.

About Marriott International

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through three segments: North American Full-Service, North American Limited-Service, and Asia Pacific. It operates its properties under the JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Westin, Renaissance, Le Méridien, Autograph Collection, Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, Marriott Vacation Club, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of October 9, 2018, it operated approximately 6,700 properties under 30 hotel brands in 130 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

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