Marriott International (NASDAQ: MAR) and Hilton Grand Vacations (NYSE:HGV) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Marriott International and Hilton Grand Vacations, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marriott International 1 7 9 0 2.47
Hilton Grand Vacations 0 0 8 0 3.00

Marriott International currently has a consensus price target of $99.80, indicating a potential downside of 6.22%. Hilton Grand Vacations has a consensus price target of $38.25, indicating a potential upside of 6.72%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, analysts clearly believe Hilton Grand Vacations is more favorable than Marriott International.

Dividends

Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.2%. Hilton Grand Vacations does not pay a dividend. Marriott International pays out 45.5% of its earnings in the form of a dividend.

Insider and Institutional Ownership

65.9% of Marriott International shares are held by institutional investors. Comparatively, 97.9% of Hilton Grand Vacations shares are held by institutional investors. 11.3% of Marriott International shares are held by company insiders. Comparatively, 0.5% of Hilton Grand Vacations shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Marriott International and Hilton Grand Vacations’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marriott International $4.57 billion 8.67 $2.54 billion $2.90 36.70
Hilton Grand Vacations $1.53 billion 2.32 $383.00 million N/A N/A

Marriott International has higher revenue and earnings than Hilton Grand Vacations.

Profitability

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

Net Margins Return on Equity Return on Assets
Marriott International 5.27% 26.26% 5.76%
Hilton Grand Vacations N/A 88.54% 6.44%

Summary

Marriott International beats Hilton Grand Vacations on 7 of the 13 factors compared between the two stocks.

Marriott International Company Profile

Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.

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.

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