Wynn Macau (OTCMKTS:WYNMY) vs. Target Hospitality (NASDAQ:TH) Critical Analysis

Target Hospitality (NASDAQ:TH) and Wynn Macau (OTCMKTS:WYNMY) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, profitability, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

32.4% of Target Hospitality shares are owned by institutional investors. 67.0% of Target Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Target Hospitality and Wynn Macau, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Target Hospitality	0	3	0	0	2.00
Wynn Macau	0	0	0	0	0.00

Target Hospitality presently has a consensus price target of $11.00, indicating a potential upside of 33.01%. Given Target Hospitality’s stronger consensus rating and higher possible upside, research analysts plainly believe Target Hospitality is more favorable than Wynn Macau.

Volatility & Risk

Target Hospitality has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Wynn Macau has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Earnings and Valuation

This table compares Target Hospitality and Wynn Macau”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Target Hospitality	$563.61 million	1.45	$173.70 million	$0.87	9.51
Wynn Macau	$3.10 billion	1.30	$149.62 million	N/A	N/A

Target Hospitality has higher earnings, but lower revenue than Wynn Macau.

Profitability

This table compares Target Hospitality and Wynn Macau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Target Hospitality	20.84%	22.80%	12.82%
Wynn Macau	N/A	N/A	N/A

Summary

Target Hospitality beats Wynn Macau on 10 of the 11 factors compared between the two stocks.

About Target Hospitality

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through two segments, Hospitality & Facilities Services – South and Government. It owns a network of specialty rental accommodation units. In addition, the company provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation facilities, workforce community management, concierge, and laundry services. It serves the U.S. government contractors and investment grade natural resource development companies. Target Hospitality Corp. was founded in 1978 and is headquartered in The Woodlands, Texas.

About Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.