Both parent and spinoff offer appeal

Article Excerpt

Studies show that both a spinoff and its parent company perform better than comparable firms for several years following their split. That’s especially so with industry leaders like these two. We think both have gains ahead. WYNDHAM DESTINATIONS $46.37 (New York symbol WYND; TSI Rating: Extra Risk) (973-753-6000; www.wyndhamdestinations.com; Shares outstanding: 93.6 million; Market cap: $4.4 billion; Dividend yield: 3.9%) is the former Wyndham Worldwide (WYN). It changed its name at the same time it spun off Wyndham Hotels on June 4, 2018 (see right). Wyndham Destinations is the world’s largest vacation ownership and exchange company. It operates 220 vacation timeshare resorts, with almost 900,000 owners. The company also operates the world’s largest vacation exchange network. For a fee, its members can swap Wyndham timeshare stays among themselves or with owners of other timeshare stays. Wyndham’s timeshare network includes industry leader RCI and comprises over 4,300 properties in more than 110 countries. Attractive P/E and high-yield add appeal In the quarter ended March 31, 2019, overall revenue…

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