Critical Comparison: Hyatt (H) vs. Its Rivals

Hyatt (NYSE: H) is one of 30 public companies in the “Hotels & motels” industry, but how does it weigh in compared to its peers? We will compare Hyatt to related businesses based on the strength of its earnings, analyst recommendations, valuation, profitability, dividends, institutional ownership and risk.

Insider & Institutional Ownership

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39.2% of Hyatt shares are held by institutional investors. Comparatively, 70.3% of shares of all “Hotels & motels” companies are held by institutional investors. 18.4% of Hyatt shares are held by company insiders. Comparatively, 17.4% of shares of all “Hotels & motels” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.



Dividends

Hyatt pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Hyatt pays out 33.7% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Hyatt and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hyatt $4.69 billion $249.00 million 43.74
Hyatt Competitors $3.57 billion $470.05 million 185.81

Hyatt has higher revenue, but lower earnings than its peers. Hyatt is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Hyatt has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Hyatt’s peers have a beta of 1.15, meaning that their average share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Hyatt and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyatt 0 6 9 0 2.60
Hyatt Competitors 306 1440 2186 74 2.51

Hyatt currently has a consensus price target of $80.08, suggesting a potential upside of 2.86%. As a group, “Hotels & motels” companies have a potential upside of 0.79%. Given Hyatt’s stronger consensus rating and higher probable upside, analysts clearly believe Hyatt is more favorable than its peers.

Profitability

This table compares Hyatt and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyatt 5.31% 6.02% 2.85%
Hyatt Competitors 10.97% 12.75% 4.81%

Summary

Hyatt peers beat Hyatt on 8 of the 15 factors compared.

Hyatt Company Profile

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, residential, and other properties. It operates in four segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, and EAME/SW Asia Management and Franchising. The company operates its properties under the Hyatt, Park Hyatt, Miraval, Grand Hyatt, Hyatt Regency, Andaz, Hyatt Centric, The Unbound Collection by Hyatt, Hyatt Place, Hyatt House, Hyatt Ziva, Hyatt Zilara, echale, Hyatt Residence Club, Hyatt Residences, World of Hyatt, and Hyatt Resorts brands and trademarks. As of December 31, 2017, its portfolio consisted of 719 full and select service hotels with 182,913 rooms. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal accounts; travel organizations; and a group of individual consumers. Hyatt Hotels Corporation has a strategic development agreement with Tianfu Minyoun Hospitality for the expansion of Hyatt Place and Hyatt House hotels in China. The company was formerly known as Global Hyatt Corporation and changed its name to Hyatt Hotels Corporation in June 2009. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

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