Target Hospitality (NASDAQ:TH) and Wynn Macau (OTCMKTS:WYNMY) Critical Review

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

Valuation & Earnings

This table compares Wynn Macau and Target Hospitality”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.10 billion	1.26	$149.62 million	N/A	N/A
Target Hospitality	$428.80 million	2.00	$173.70 million	$0.87	9.97

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

Volatility & Risk

Wynn Macau has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Target Hospitality has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Wynn Macau and Target Hospitality, as reported by MarketBeat.

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

Target Hospitality has a consensus price target of $11.00, indicating a potential upside of 26.87%. Given Target Hospitality’s stronger consensus rating and higher probable upside, analysts clearly believe Target Hospitality is more favorable than Wynn Macau.

Profitability

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

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

Institutional and Insider Ownership

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

Summary

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

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.

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.