Intercontinental Hotels Group (NYSE:IHG) versus Civeo (NYSE:CVEO) Head-To-Head Survey

Intercontinental Hotels Group (NYSE:IHG) and Civeo (NYSE:CVEO) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Intercontinental Hotels Group has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Civeo has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Intercontinental Hotels Group and Civeo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intercontinental Hotels Group	N/A	N/A	N/A
Civeo	-3.30%	-7.23%	-4.20%

Dividends

Intercontinental Hotels Group pays an annual dividend of $2.23 per share and has a dividend yield of 1.9%. Civeo pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Intercontinental Hotels Group pays out 39.5% of its earnings in the form of a dividend. Civeo pays out -61.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Civeo has raised its dividend for 1 consecutive years. Civeo is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Intercontinental Hotels Group and Civeo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intercontinental Hotels Group	$4.92 billion	3.77	$628.00 million	$5.64	21.22
Civeo	$660.05 million	0.49	-$17.07 million	($1.62)	-14.76

Intercontinental Hotels Group has higher revenue and earnings than Civeo. Civeo is trading at a lower price-to-earnings ratio than Intercontinental Hotels Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Intercontinental Hotels Group and Civeo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intercontinental Hotels Group	2	2	2	0	2.00
Civeo	0	0	1	0	3.00

Civeo has a consensus price target of $27.00, indicating a potential upside of 12.92%. Given Civeo’s stronger consensus rating and higher probable upside, analysts clearly believe Civeo is more favorable than Intercontinental Hotels Group.

Insider & Institutional Ownership

15.1% of Intercontinental Hotels Group shares are held by institutional investors. Comparatively, 81.4% of Civeo shares are held by institutional investors. 4.7% of Civeo shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Intercontinental Hotels Group beats Civeo on 9 of the 17 factors compared between the two stocks.

About Intercontinental Hotels Group

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels under the Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, voco, HUALUXE, Crowne Plaza, Iberostar Beachfront Resorts, EVEN, Holiday Inn Express, Holiday Inn, Garner, avid hotels, Atwell Suites, Staybridge Suites, Iberostar Beachfront Resorts, Holiday Inn Club Vacations, and Candlewood Suites brand names. It also provides IHG Rewards loyalty program. InterContinental Hotels Group PLC was founded in 1777 and is headquartered in Windsor, the United Kingdom.

About Civeo

Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile assets, including modular, skid-mounted accommodation, and central facilities that provide short to medium-term accommodation needs. It offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services, and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as lodging and catering services. It serves oil, mining, engineering, and oilfield and mining service companies. Civeo Corporation was founded in 1977 and is headquartered in Houston, Texas.