US Equity Market Update: October 27, 2015
Wyndham Worldwide and its peers
In this part of the series, we’ll compare Wyndham with its peers.
- The PE (price-to-earnings) ratios of Wyndham Worldwide (WYN), Marriott International (MAR), Hilton Worldwide Holdings (HLT), InterContinental Hotels Group (IHG), and Choice Hotels International (CHH) are 17.23x, 26.89x, 38.35x, 18.10x, and 24.53x, respectively.
- The PBV (price-to-book value) ratios of Wyndham and Hilton are 9.00x and 4.90x, respectively.
- The PS (price-to-sales) ratios of Wyndham, Marriott, Hilton, InterContinental, and Choice are 1.76x, 1.46x, 2.27x, 4.96x, and 3.66x, respectively.
The peers have outperformed Wyndham Worldwide based on PE and PS.
ETFs that invest in Wyndham Worldwide
The PowerShares DWA Consumer Cyclicals Momentum ETF (PEZ) invests 3.7% of its holdings in Wyndham. The ETF tracks an index of US consumer cyclicals firms selected and weighted by price momentum.
The PowerShares DWA Momentum ETF (PDP) invests 1.5% of its holdings in Wyndham. The ETF tracks an index of 100 US-listed large- and mid-cap companies selected and weighted by relative stock performance.
The Guggenheim S&P 500 Equal Weight Consumer Discretionary ETF (RCD) invests 1.1% of its holdings in Wyndham. The ETF tracks an equal weighted index of large-cap US consumer discretionary stocks drawn from the S&P 500.
Wyndham Worldwide compared to its ETFs
Now let’s compare Wyndham with the ETFs that invest in it:
- The year-to-date price movements of Wyndham, PEZ, PDP, and RCD are -6.0%, 5.1%, 3.2%, and 2.2%, respectively.
- The PE (price-to-earnings) ratios of Wyndham, PEZ, PDP, and RCD are 17.23x, 22.52x, 23.77x, and 15.32x, respectively.
- The PBV (price-to-book value) ratios of Wyndham, PEZ, PDP, and RCD are 9.00x, 7.35x, 5.46x, and 3.68x, respectively.
According to the above figures, ETFs have outperformed Wyndham Worldwide based on price movement and PE. However, Wyndham Worldwide is way ahead of its ETFs based on PBV.
Browse this series on Market Realist: