Head-To-Head Analysis: Aureus Greenway (NASDAQ:AGH) vs. Marriott Vacations Worldwide (NYSE:VAC)

Marriott Vacations Worldwide (NYSE:VAC) and Aureus Greenway (NASDAQ:AGH) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Valuation and Earnings

This table compares Marriott Vacations Worldwide and Aureus Greenway”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Marriott Vacations Worldwide	$4.97 billion	0.38	$218.00 million	$4.46	12.38
Aureus Greenway	$3.30 million	22.41	-$180,000.00	($0.20)	-24.55

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

Analyst Recommendations

This is a summary of current recommendations for Marriott Vacations Worldwide and Aureus Greenway, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Marriott Vacations Worldwide	4	1	4	0	2.00
Aureus Greenway	1	0	0	0	1.00

Marriott Vacations Worldwide presently has a consensus price target of $63.38, indicating a potential upside of 14.76%. Given Marriott Vacations Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Marriott Vacations Worldwide is more favorable than Aureus Greenway.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Marriott Vacations Worldwide	3.44%	11.44%	2.83%
Aureus Greenway	-95.21%	-19.54%	-16.92%

Insider & Institutional Ownership

89.5% of Marriott Vacations Worldwide shares are held by institutional investors. 1.6% of Marriott Vacations Worldwide shares are held by insiders. Comparatively, 38.6% of Aureus Greenway shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Marriott Vacations Worldwide beats Aureus Greenway on 11 of the 13 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 Aureus Greenway

We own and operate two public golf country clubs in Florida that each features a golf-club, consisting of over 289 acres of multi-service recreational property. Our golf country clubs include two golf-courses with over 13,000 yards of combined fairways, clubhouses boasting food and beverage options, aquatic golf ranges, and pro shops to assist any level of golfer. We believe our golf country clubs are a serene combination of approachable golf and nature that are designed to appeal to local residents and tourists alike. The property underlying both of our golf country clubs and the owner of that property are part of and subject to the Association, a not-for-profit corporation homeowners association. Leveraging our two golf country clubs, we plan to (i) continue to develop customer loyalty and capture a greater share of the golf-players who live in,. or visit the greater Orlando region and (ii) increase our revenue from the operation of our golf country clubs. We believe the quality of our golf-courses and the amenities we offer will continue to enhance our ability to attract and retain golf-players across a number of demographic groups and skill levels. Each of our golf country clubs is organized into four principal business sectors: (i) golf recreation, retail golf products, and equipment and facilities rental, (ii) membership dues, (iii) food and beverage services. and (iv) ancillary services and amenities. Each of the golf-courses featured at our golf country clubs present a different set of physical and strategic challenges depending on the layout and where we place the position of a ball-hole and flagstick on a green from time to time during the golf-season. We believe this variation helps to create an enjoyable experience for our customers, no matter how many times they have visited our golf-courses before. We acquired both of our golf country clubs in 2014, and since then, our management team has grown alongside the business. Similarly, our revenue has increased steadily during the last five years due to efforts from our greens superintendent as well as the executive management team. We believe recent capital improvements at both golf country clubs will help the facilities and our golf-courses progressively grow in stature and reputation in order to keep up to date with future infrastructure needs that can meet future demand and structural wherewithal. As a result of these upgrades and our management’s plans for growth, we believe they have gained valuable experience and are well-equipped to take on additional assets and continue to enhance the performance of both golf country clubs since our initial acquisition in 2014. Our principal executive office is located at 2995 Remington Boulevard, Kissimmee, Florida 34744.