Contrasting Wynn Macau (OTCMKTS:WYNMF) & Hilton Worldwide (NYSE:HLT)

Wynn Macau (OTCMKTS:WYNMF) and Hilton Worldwide (NYSE:HLT) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Wynn Macau and Hilton Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	0	0	1	0	3.00
Hilton Worldwide	0	8	13	1	2.68

Hilton Worldwide has a consensus price target of $321.24, suggesting a potential upside of 2.10%. Given Hilton Worldwide’s higher probable upside, analysts clearly believe Hilton Worldwide is more favorable than Wynn Macau.

Risk and Volatility

Wynn Macau has a beta of -0.28, suggesting that its stock price is 128% less volatile than the S&P 500. Comparatively, Hilton Worldwide has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Valuation & Earnings

This table compares Wynn Macau and Hilton Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.68 billion	N/A	$410.01 million	N/A	N/A
Hilton Worldwide	$12.04 billion	5.99	$1.54 billion	$6.91	45.53

Hilton Worldwide has higher revenue and earnings than Wynn Macau.

Profitability

This table compares Wynn Macau and Hilton Worldwide’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
Hilton Worldwide	12.10%	-40.24%	11.81%

Insider and Institutional Ownership

95.9% of Hilton Worldwide shares are owned by institutional investors. 2.6% of Hilton Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Hilton Worldwide beats Wynn Macau on 10 of the 12 factors compared between the two stocks.

About Wynn Macau

Wynn Macau, Limited engages in the development, ownership, and operation of integrated destination casino resorts in the People’s Republic of China. It operates through two segments, Wynn Palace and Wynn Macau. The company offers tables games, slot machines or similar gaming devices; offers 24-hour gaming, and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; food and beverage outlets; brand-name and retail shopping; recreation and leisure facilities, including a cable car ride through SkyCab, health club, spa, salon, and pool; and a meeting and convention spaces. It provides poker pit games; and public entertainment attractions, consisting of rotunda show featuring a Chinese zodiac-inspired ceiling along with gold tree of prosperity and dragon of fortune attractions, as well as performance lake. In addition, the company is involved in the development, design, and preconstruction activities, and offers technical consultancy, administrative activities, and management and support services. 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 Hilton Worldwide

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. The company was founded in 1919 and is headquartered in McLean, Virginia.