Marriot Vacations Worldwide Corporation (NYSE: VAC) and Hilton Worldwide Holdings (NYSE:HLT) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Profitability

This table compares Marriot Vacations Worldwide Corporation and Hilton Worldwide Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marriot Vacations Worldwide Corporation 7.90% 16.96% 6.53%
Hilton Worldwide Holdings 0.39% 19.65% 3.76%

Risk and Volatility

Marriot Vacations Worldwide Corporation has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Hilton Worldwide Holdings has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Marriot Vacations Worldwide Corporation and Hilton Worldwide Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marriot Vacations Worldwide Corporation 0 2 5 0 2.71
Hilton Worldwide Holdings 1 5 10 0 2.56

Marriot Vacations Worldwide Corporation currently has a consensus target price of $117.14, indicating a potential upside of 6.49%. Hilton Worldwide Holdings has a consensus target price of $71.43, indicating a potential upside of 16.98%. Given Hilton Worldwide Holdings’ higher probable upside, analysts plainly believe Hilton Worldwide Holdings is more favorable than Marriot Vacations Worldwide Corporation.

Dividends

Marriot Vacations Worldwide Corporation pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Hilton Worldwide Holdings pays an annual dividend of $0.60 per share and has a dividend yield of 1.0%. Marriot Vacations Worldwide Corporation pays out 25.2% of its earnings in the form of a dividend. Hilton Worldwide Holdings pays out 461.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Marriot Vacations Worldwide Corporation has raised its dividend for 2 consecutive years. Marriot Vacations Worldwide Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

79.1% of Marriot Vacations Worldwide Corporation shares are held by institutional investors. 3.3% of Marriot Vacations Worldwide Corporation shares are held by company insiders. Comparatively, 1.5% of Hilton Worldwide Holdings 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.

Earnings and Valuation

This table compares Marriot Vacations Worldwide Corporation and Hilton Worldwide Holdings’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Marriot Vacations Worldwide Corporation $1.36 billion 2.19 $268.31 million $5.56 19.78
Hilton Worldwide Holdings $7.39 billion 2.68 $2.78 billion $0.13 469.48

Hilton Worldwide Holdings has higher revenue and earnings than Marriot Vacations Worldwide Corporation. Marriot Vacations Worldwide Corporation is trading at a lower price-to-earnings ratio than Hilton Worldwide Holdings, indicating that it is currently the more affordable of the two stocks.

Summary

Marriot Vacations Worldwide Corporation beats Hilton Worldwide Holdings on 9 of the 17 factors compared between the two stocks.

About Marriot Vacations Worldwide Corporation

Marriott Vacations Worldwide Corporation focuses on vacation ownership, based on number of owners, number of resorts and revenues. The Company is an exclusive worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The Company operates through three segments North America, Europe and Asia Pacific. In the North America segment, it develops, markets, sells and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. Its Europe segment is engaged in selling its existing projects and managing existing resorts. Its Asia Pacific segment, it develops, markets, sells and manages two points-based programs that it designed to appeal to the vacation preferences of the market, Marriott Vacation Club, Asia Pacific and Marriott Vacation Club Destinations, Australia, as well as a weeks-based right-to-use product.

About Hilton Worldwide Holdings

Hilton Worldwide Holdings Inc. is a hospitality company. The Company is engaged in owning, leasing, managing and franchising hotels and resorts. The Company’s segments include ownership, and management and franchise. Its global portfolio of owned and leased properties includes a range of hotels in gateway cities, such as New York City, London, San Francisco, Chicago, Sao Paolo and Tokyo. The Company’s management and franchise segment manages hotels and licenses its brands to franchisees. Its brand portfolio includes Hilton Hotels & Resorts, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Curio-A Collection by Hilton, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton and Home2 Suites by Hilton. As of December 31, 2016, the Company owned, leased, managed or franchised 4,875 hotel and resort properties, totaling 796,440 rooms in 104 countries and territories.

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