Hyatt Hotels (NYSE:H) versus Hilton Grand Vacations (NYSE:HGV) Head-To-Head Review

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

Insider and Institutional Ownership

73.5% of Hyatt Hotels shares are held by institutional investors. Comparatively, 97.2% of Hilton Grand Vacations shares are held by institutional investors. 23.6% of Hyatt Hotels 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Hyatt Hotels has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Hyatt Hotels and Hilton Grand Vacations, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyatt Hotels	0	6	11	0	2.65
Hilton Grand Vacations	1	10	2	0	2.08

Hyatt Hotels currently has a consensus price target of $200.62, indicating a potential upside of 8.97%. Hilton Grand Vacations has a consensus price target of $49.10, indicating a potential upside of 11.78%. Given Hilton Grand Vacations’ higher probable upside, analysts plainly believe Hilton Grand Vacations is more favorable than Hyatt Hotels.

Earnings and Valuation

This table compares Hyatt Hotels and Hilton Grand Vacations”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyatt Hotels	$7.11 billion	2.44	-$52.00 million	$1.93	95.40
Hilton Grand Vacations	$5.05 billion	0.66	$81.00 million	$5.19	8.46

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hyatt Hotels	2.62%	11.63%	2.99%
Hilton Grand Vacations	7.02%	39.73%	4.61%

Summary

Hilton Grand Vacations beats Hyatt Hotels on 8 of the 14 factors compared between the two stocks.

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.

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.