Financial Survey: Travel + Leisure (NYSE:TNL) and Viking (NYSE:VIK)

Travel + Leisure (NYSE:TNL) and Viking (NYSE:VIK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility & Risk

Travel + Leisure has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Viking has a beta of 1.9, suggesting that its share price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Travel + Leisure and Viking, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Travel + Leisure	0	3	8	0	2.73
Viking	2	3	11	0	2.56

Travel + Leisure currently has a consensus price target of $85.20, indicating a potential upside of 26.53%. Viking has a consensus price target of $82.00, indicating a potential upside of 0.37%. Given Travel + Leisure’s stronger consensus rating and higher probable upside, equities analysts plainly believe Travel + Leisure is more favorable than Viking.

Valuation and Earnings

This table compares Travel + Leisure and Viking”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Travel + Leisure	$4.02 billion	1.05	$230.00 million	$3.56	18.91
Viking	$6.50 billion	5.60	$1.15 billion	$2.57	31.79

Viking has higher revenue and earnings than Travel + Leisure. Travel + Leisure is trading at a lower price-to-earnings ratio than Viking, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Travel + Leisure and Viking’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Travel + Leisure	5.85%	-48.06%	6.48%
Viking	17.65%	240.75%	10.23%

Insider and Institutional Ownership

87.5% of Travel + Leisure shares are owned by institutional investors. Comparatively, 98.8% of Viking shares are owned by institutional investors. 4.0% of Travel + Leisure shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Viking beats Travel + Leisure on 10 of the 14 factors compared between the two stocks.

About Travel + Leisure

Travel + Leisure Co., together with its subsidiaries, provides hospitality services and travel products in the United States and internationally. The company operates in two segments, Vacation Ownership; and Travel and Membership. The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers, as well as provides consumer financing in connection with the sale of VOIs; and property management services at resorts. The Travel and Membership segment operates various travel businesses, including three vacation exchange brands, travel technology platforms, travel memberships, and direct-to-consumer rentals. This segment also offers private-label travel booking technology solutions. The company was formerly known as Wyndham Destinations, Inc. and changed its name to Travel + Leisure Co. in February 2021. Travel + Leisure Co. was founded in 1990 and is headquartered in Orlando, Florida.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.