Critical Review: Hall of Fame Resort & Entertainment (NASDAQ:HOFV) vs. Hyatt Hotels (NYSE:H)

Hall of Fame Resort & Entertainment (NASDAQ:HOFV) and Hyatt Hotels (NYSE:H) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Volatility & Risk

Hall of Fame Resort & Entertainment has a beta of 2.38, meaning that its share price is 138% more volatile than the S&P 500. Comparatively, Hyatt Hotels has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.

Profitability

This table compares Hall of Fame Resort & Entertainment and Hyatt Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hall of Fame Resort & Entertainment	-282.07%	-70.14%	-14.04%
Hyatt Hotels	6.39%	6.54%	1.80%

Institutional and Insider Ownership

3.6% of Hall of Fame Resort & Entertainment shares are owned by institutional investors. Comparatively, 73.5% of Hyatt Hotels shares are owned by institutional investors. 59.9% of Hall of Fame Resort & Entertainment shares are owned by company insiders. Comparatively, 23.7% of Hyatt Hotels shares are owned 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.

Earnings and Valuation

This table compares Hall of Fame Resort & Entertainment and Hyatt Hotels”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hall of Fame Resort & Entertainment	$19.96 million	0.16	-$56.92 million	($8.14)	-0.06
Hyatt Hotels	$6.65 billion	2.14	$1.30 billion	$4.21	35.34

Hyatt Hotels has higher revenue and earnings than Hall of Fame Resort & Entertainment. Hall of Fame Resort & Entertainment is trading at a lower price-to-earnings ratio than Hyatt Hotels, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Hall of Fame Resort & Entertainment and Hyatt Hotels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hall of Fame Resort & Entertainment	0	0	0	0	0.00
Hyatt Hotels	1	8	9	2	2.60

Hyatt Hotels has a consensus price target of $154.76, indicating a potential upside of 4.01%. Given Hyatt Hotels’ stronger consensus rating and higher probable upside, analysts clearly believe Hyatt Hotels is more favorable than Hall of Fame Resort & Entertainment.

Summary

Hyatt Hotels beats Hall of Fame Resort & Entertainment on 13 of the 15 factors compared between the two stocks.

About Hall of Fame Resort & Entertainment

Hall of Fame Resort & Entertainment Co. is a resort and entertainment company, which leverages the power and popularity of professional football and its legendary players in partnership with the Pro Football Hall of Fame. The company was founded in 2015 and is headquartered in Canton, OH.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.