Critical Contrast: Sonder (NASDAQ:SOND) and Wynn Macau (OTCMKTS:WYNMY)

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

Volatility and Risk

Wynn Macau has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Sonder has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Insider & Institutional Ownership

45.9% of Sonder shares are held by institutional investors. 17.5% of Sonder shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings for Wynn Macau and Sonder, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	0	0	0	0	0.00
Sonder	0	1	0	0	2.00

Valuation and Earnings

This table compares Wynn Macau and Sonder”s 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	1.20	$149.62 million	N/A	N/A
Sonder	$602.07 million	0.07	-$295.67 million	($16.57)	-0.22

Wynn Macau has higher revenue and earnings than Sonder.

Profitability

This table compares Wynn Macau and Sonder’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
Sonder	-29.20%	N/A	-12.54%

Summary

Wynn Macau beats Sonder on 5 of the 9 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 Sonder

Sonder Holdings Inc. engages in the hospitality business. It operates and manages properties comprising 1-, 2-, and 3+ bedroom; and studio apartments, as well as 1-bedroom hotel rooms for leisure travelers and families, digital nomads, and business travelers in North America, Europe, and the Middle East. The company is headquartered in San Francisco, California.