As the hotel industry recovers, investors will be looking for investment candidates. Hyatt Hotels (NYSE:H) and Marriott International (NASDAQ:MAR) are two potential candidates. This analysis considers which of the two is a better stock.
Hyatt Hotels is trading at $70. The stock is A-rated for momentum and growth. Analysis shows that the stock could establish support at $70. The potential upside is up to $90, considering the bear market. However, the performance would depend mainly on the returns coming up in the first week of August.
Marriott International is trading at $133 with potential support at $130. The potential upside is up to $170. The company pays a dividend at a yield rate of 0.88%. Besides, Marriott is projected to post stronger growth in revenues and earnings than Hyatt.
Marriott is rated a strong buy by Zacks Research. The same research house rates Hyatt Hotels as a hold. We note there are fundamental differences between the two companies. The differences make Marriott International a better investment candidate than Hyatt Hotels.
Marriott has higher returns than Hyatt Hotels
Source – TradingView
For the same period beginning 2019, Marriott International returned 13.82% in gains. On the other hand, Hyatt Hotels returned only 1.52%. The rates of return show that there are fundamental differences between the two stocks. The differences account for the huge differences in the returns. In the event of a market rally, Marriott would still post better returns.
Summary
Our analysis shows that Marriott International performed significantly better than its competitor. As demand grows in the summer holiday, Marriott is a better investment than Hyatt Hotels. The dividend yield, projected growth rate, and market gains make Marriott a better stock.
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