[1] Price: H market valuation (P/S) is substantially lower vs MRO
[2] Performance: Compared to MRO, H has worse revenue growth performance but better margin performance
[3] Proof: In the past 3 years, H returned much higher -11% vs -44% for MRO
[4] Recovery: H performed worse vs MRO in post-covid recovery
In this case, the decision is not obvious but digging deeper into metrics below can help
Peer Comparison: General
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Hyatt Hotels Marathon Oil
Price P/S 1.4 2.8 P/EBIT -37.0 -6.0
Performance: Revenue Growth worse better Last Quarter -66.7% -31.7% Last 12 Months -58.8% -40.5% Last 3 Year Average -15.4% -7.9%
Performance: Operating Margin Increase better worse LTM* Increase -1632 bps -5503 bps Last 3 Year Increase 3842 bps -3794 bps
Proof: Past 3 Year Market Returns -11% -44%
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Peer Comparison: Recovery
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Hyatt Hotels Marathon Oil
Recovery: Revenue Growth worse better QoQ 6.3% 10% Q (yoy) -67% -32% Q (yoy) vs
LTM -67% vs
-59% -32% vs
-41%----------------------------------------------------------------------------------------------------------------------------
Note: QoQ = most recent quarter growth over quarter before it; Q (yoy) = most recent quarter growth over same quarter a year ago; LTM = last 12 months