Hyatt Hotels vs Sonder Which Is a Better Investment?

Hyatt Hotels and Sonder are two prominent players in the hospitality industry, each offering unique opportunities for investors. Hyatt Hotels, a well-established brand with a global presence, has a strong reputation for high-quality service and luxurious accommodations. On the other hand, Sonder is a tech-driven hospitality company that specializes in short-term rentals and flexible accommodations. Both Hyatt Hotels and Sonder stocks have experienced growth in recent years, attracting investors looking to capitalize on the evolving trends in the travel and hospitality sector.

Hyatt Hotels or Sonder?

When comparing Hyatt Hotels and Sonder, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Hyatt Hotels and Sonder.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Hyatt Hotels has a dividend yield of 0.38%, while Sonder has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hyatt Hotels reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.52%. On the other hand, Sonder reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Hyatt Hotels P/E ratio at 11.32 and Sonder's P/E ratio at -0.24. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hyatt Hotels P/B ratio is 4.22 while Sonder's P/B ratio is -0.11.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hyatt Hotels has seen a 5-year revenue growth of 0.63%, while Sonder's is -0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hyatt Hotels's ROE at 37.33% and Sonder's ROE at 52.59%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $155.42 for Hyatt Hotels and $3.56 for Sonder. Over the past year, Hyatt Hotels's prices ranged from $107.01 to $162.24, with a yearly change of 51.61%. Sonder's prices fluctuated between $0.88 and $10.50, with a yearly change of 1093.18%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.