Hilton Grand Vacations (NYSE: HGV) and Intercontinental Hotels Group (NYSE:IHG) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
Institutional and Insider Ownership
95.7% of Hilton Grand Vacations shares are owned by institutional investors. Comparatively, 6.9% of Intercontinental Hotels Group shares are owned by institutional investors. 0.5% of Hilton Grand Vacations shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Intercontinental Hotels Group pays an annual dividend of $0.96 per share and has a dividend yield of 1.8%. Hilton Grand Vacations does not pay a dividend. Hilton Grand Vacations has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Hilton Grand Vacations and Intercontinental Hotels Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hilton Grand Vacations||$1.53 billion||2.23||$383.00 million||N/A||N/A|
|Intercontinental Hotels Group||$1.73 billion||5.70||$780.00 million||N/A||N/A|
Intercontinental Hotels Group has higher revenue and earnings than Hilton Grand Vacations.
This is a breakdown of current ratings and target prices for Hilton Grand Vacations and Intercontinental Hotels Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hilton Grand Vacations||0||0||8||0||3.00|
|Intercontinental Hotels Group||2||4||2||0||2.00|
Hilton Grand Vacations currently has a consensus price target of $38.25, suggesting a potential upside of 10.87%. Intercontinental Hotels Group has a consensus price target of $44.00, suggesting a potential downside of 15.27%. Given Hilton Grand Vacations’ stronger consensus rating and higher possible upside, analysts clearly believe Hilton Grand Vacations is more favorable than Intercontinental Hotels Group.
This table compares Hilton Grand Vacations and Intercontinental Hotels Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hilton Grand Vacations||N/A||88.54%||6.44%|
|Intercontinental Hotels Group||N/A||N/A||N/A|
Hilton Grand Vacations beats Intercontinental Hotels Group on 8 of the 12 factors compared between the two stocks.
Hilton Grand Vacations Company Profile
Hilton Grand Vacations Inc. is a timeshare company that markets and sells vacation ownership intervals (VOIs), manages resorts in leisure and urban destinations, and operates a points-based vacation club. The Company operates its business across two segments: Real Estate Sales and Financing, and Resort Operations and Club Management. As of September 30, 2016, the Company had 46 resorts, representing 7,592 units, and approximately 265,000 Hilton Grand Vacations Club (the Club) members. Club members can exchange their Club points for stays at any resort or any property in the Hilton system of various brands across over 4,700 properties, as well as various vacation options, such as cruises and guided tours. VOI product allows customers to purchase a lifetime of vacations. The Company offers amenities, such as full kitchens, in-unit washers and dryers, spas and kids’ clubs along with beach-front locations.
Intercontinental Hotels Group Company Profile
InterContinental Hotels Group PLC is a hotel company. The Company franchises its brands to, and manages hotels on behalf of, third-party hotel owners. Its segments include The Americas; Europe; Asia, Middle East and Africa (AMEA); Greater China, and Central. It operates a portfolio of hotel brands, including InterContinental, HUALUXE, Kimpton, Crowne Plaza, Hotel Indigo, EVEN Hotels, Holiday Inn, Holiday Inn Express, Staybridge Suites Hotels, Holiday Inn Resort, Holiday Inn Club Vacations and Candlewood Suites Hotels. As of December 31, 2016, The Americas pipeline totaled 945 hotels (102,451 rooms). As of December 31, 2016, the Europe pipeline totaled 137 hotels (23,954 rooms). As of December 31, 2016, the AMEA pipeline totaled 149 hotels (39,643 rooms). As of December 31, 2016, the Greater China pipeline totaled 239 hotels (64,028 rooms). As of April 21, 2017, it had 5,200 hotels and 777,000 rooms in its system. As of April 21, 2017, it operated in over 100 countries globally.
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