Head-To-Head Review: La Quinta Holdings (LQ) versus Marcus Corporation (The) (MCS)
La Quinta Holdings (NYSE: LQ) and Marcus Corporation (The) (NYSE:MCS) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitabiliy, risk and analyst recommendations.
This table compares La Quinta Holdings and Marcus Corporation (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|La Quinta Holdings||3.91%||8.04%||1.81%|
|Marcus Corporation (The)||7.18%||10.78%||4.71%|
This is a summary of recent recommendations and price targets for La Quinta Holdings and Marcus Corporation (The), as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|La Quinta Holdings||1||4||2||0||2.14|
|Marcus Corporation (The)||0||0||4||0||3.00|
La Quinta Holdings currently has a consensus price target of $12.69, indicating a potential downside of 17.28%. Marcus Corporation (The) has a consensus price target of $37.60, indicating a potential upside of 39.00%. Given Marcus Corporation (The)’s stronger consensus rating and higher possible upside, analysts plainly believe Marcus Corporation (The) is more favorable than La Quinta Holdings.
Valuation and Earnings
This table compares La Quinta Holdings and Marcus Corporation (The)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|La Quinta Holdings||$973.13 million||1.85||$308.98 million||$0.34||45.12|
|Marcus Corporation (The)||$594.17 million||1.30||$125.26 million||$1.51||17.91|
La Quinta Holdings has higher revenue and earnings than Marcus Corporation (The). Marcus Corporation (The) is trading at a lower price-to-earnings ratio than La Quinta Holdings, indicating that it is currently the more affordable of the two stocks.
Marcus Corporation (The) pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. La Quinta Holdings does not pay a dividend. Marcus Corporation (The) pays out 33.1% of its earnings in the form of a dividend. La Quinta Holdings has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
99.2% of La Quinta Holdings shares are held by institutional investors. Comparatively, 57.7% of Marcus Corporation (The) shares are held by institutional investors. 1.6% of La Quinta Holdings shares are held by insiders. Comparatively, 33.5% of Marcus Corporation (The) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
La Quinta Holdings has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500. Comparatively, Marcus Corporation (The) has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Marcus Corporation (The) beats La Quinta Holdings on 9 of the 17 factors compared between the two stocks.
La Quinta Holdings Company Profile
La Quinta Holdings Inc. is an owner, operator and franchisor of select-service hotels primarily serving the midscale and upper-midscale sectors under the La Quinta brand. The Company’s segments include owned hotels, franchise and management, and corporate and other. The owned hotels segment is engaged in the operation of owned hotel properties. The franchise and management segment is engaged in various license, franchise and management agreements relating to its owned and franchised hotels. As of December 31, 2016, its portfolio consisted of 888 hotels representing approximately 87,200 rooms located primarily across 48 states in the United States, as well as in Canada, Mexico, Honduras and Colombia, of which 322 hotels were owned and operated, and 566 were franchised. As of December 31, 2016, the Company had a pipeline of 248 franchised hotels in the United States, Mexico, Colombia, Nicaragua, Guatemala, Chile and El Salvador.
Marcus Corporation (The) Company Profile
The Marcus Corporation operates principally in two business segments: Theatres, and Hotels and Resorts. The Theatres segment operates multiscreen motion picture theatres in Wisconsin, Illinois, Ohio, Minnesota, Iowa, North Dakota and Nebraska, and a family entertainment center in Wisconsin. The Hotels and Resorts segment owns and operates hotels and resorts in Wisconsin, Illinois, Oklahoma and Nebraska, and manages hotels, resorts and other properties in Wisconsin, Minnesota, Texas, Nevada, Georgia, Florida and California. As of December 31, 2015, the Company owned or operated 53 movie theatre locations with a total of 668 screens in Wisconsin, Illinois, Iowa, Minnesota, Nebraska, North Dakota and Ohio. Its owned and operated hotels and resorts include The Pfister Hotel, The Hilton Milwaukee City Center, Hilton Madison at Monona Terrace, The Grand Geneva Resort & Spa, InterContinental Milwaukee, Skirvin Hilton, AC Hotel Chicago Downtown and The Lincoln Marriott Cornhusker Hotel.
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