Hilton Grand Vacations (NYSE:HGV) & Starbucks (NASDAQ:SBUX) Head to Head Analysis

Starbucks (NASDAQ:SBUX) and Hilton Grand Vacations (NYSE:HGV) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider & Institutional Ownership

72.3% of Starbucks shares are held by institutional investors. Comparatively, 97.2% of Hilton Grand Vacations shares are held by institutional investors. 0.0% of Starbucks shares are held by company insiders. Comparatively, 3.1% of Hilton Grand Vacations shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Starbucks and Hilton Grand Vacations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Starbucks	5.17%	-34.10%	9.03%
Hilton Grand Vacations	2.86%	20.40%	2.41%

Valuation & Earnings

This table compares Starbucks and Hilton Grand Vacations”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Starbucks	$37.18 billion	2.90	$1.86 billion	$1.74	54.43
Hilton Grand Vacations	$5.05 billion	0.54	$81.00 million	$1.77	19.71

Starbucks has higher revenue and earnings than Hilton Grand Vacations. Hilton Grand Vacations is trading at a lower price-to-earnings ratio than Starbucks, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Starbucks has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Starbucks and Hilton Grand Vacations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Starbucks	4	11	18	1	2.47
Hilton Grand Vacations	0	8	4	0	2.33

Starbucks currently has a consensus price target of $110.48, suggesting a potential upside of 16.65%. Hilton Grand Vacations has a consensus price target of $54.67, suggesting a potential upside of 56.66%. Given Hilton Grand Vacations’ higher probable upside, analysts plainly believe Hilton Grand Vacations is more favorable than Starbucks.

Summary

Starbucks beats Hilton Grand Vacations on 9 of the 15 factors compared between the two stocks.

About Starbucks

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

About Hilton Grand Vacations

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans. Resort Operations and Club Management segment manages and operates the clubs which offers exchange, leisure travel, and reservation services, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs, and provides ancillary services including food and beverage, retail and spa at timeshare properties. Hilton Grand Vacations Inc. was founded in 1992 and is headquartered in Orlando, Florida.