Manchester United (NYSE: MANU) and MakeMyTrip Limited (NASDAQ:MMYT) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

73.1% of Manchester United shares are owned by institutional investors. Comparatively, 41.0% of MakeMyTrip Limited shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Manchester United and MakeMyTrip Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manchester United 2.51% 4.36% 1.40%
MakeMyTrip Limited -24.61% -22.22% -14.77%

Earnings & Valuation

This table compares Manchester United and MakeMyTrip Limited’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manchester United $699.87 million 4.01 $217.77 million $0.10 171.02
MakeMyTrip Limited $447.62 million 7.48 -$96.28 million ($1.91) -17.36

Manchester United has higher revenue and earnings than MakeMyTrip Limited. MakeMyTrip Limited is trading at a lower price-to-earnings ratio than Manchester United, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Manchester United has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, MakeMyTrip Limited has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500.

Dividends

Manchester United pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. MakeMyTrip Limited does not pay a dividend. Manchester United pays out 180.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Manchester United and MakeMyTrip Limited, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manchester United 0 0 3 0 3.00
MakeMyTrip Limited 1 0 2 0 2.33

Manchester United presently has a consensus price target of $20.47, suggesting a potential upside of 19.69%. MakeMyTrip Limited has a consensus price target of $23.85, suggesting a potential downside of 28.05%. Given Manchester United’s stronger consensus rating and higher possible upside, analysts plainly believe Manchester United is more favorable than MakeMyTrip Limited.

Summary

Manchester United beats MakeMyTrip Limited on 12 of the 14 factors compared between the two stocks.

About Manchester United

Manchester United plc is engaged in the operation of a professional football club together with related and ancillary activities. Its football operations primarily comprise various activities, such as its first team, reserve team, youth academy, global scouting networks and other operations, such as its sport science, medical and fitness operations at the Aon Training Complex. It operates in three sectors, including Commercial, Broadcasting and Matchday. Within the Commercial revenue sector, the Company monetizes its global brand through approximately three revenue streams, such as sponsorship; retail, merchandising, apparel and product licensing, and mobile and content. It monetizes the value of its global brand and community of followers through marketing and sponsorship relationships with international and regional companies around the world. It markets and sells sports apparel, training and leisure wear and other clothing featuring the Manchester United brand on a global basis.

About MakeMyTrip Limited

MakeMyTrip Limited is an online travel company in India. The Company’s services and products include air ticketing, hotels, packages, rail tickets, bus tickets, car hire and ancillary travel requirements, such as facilitating access to third-party travel insurance and visa processing. Its segments include Air ticketing, which provides the facility to book international and domestic air tickets through an Internet-based platform; Hotels and packages, which provides holiday packages and hotel reservations through an Internet-based platform, call-centers and branch offices, and Others, which include advertisement income from hosting advertisements on its Internet Web-sites, income from sale of rail and bus tickets and income from facilitating Website access to a travel insurance company. Through the Company’s Website, www.makemytrip.com, and mobile platforms, travelers can research, plan and book a range of travel services and products in India, as well as overseas.

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