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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hilton Grand Vacations $1.53 billion 2.31 $383.00 million N/A N/A
Marriot Vacations Worldwide Corporation $1.36 billion 2.23 $268.31 million $5.56 20.20

Hilton Grand Vacations has higher revenue and earnings than Marriot Vacations Worldwide Corporation.

Analyst Ratings

This is a summary of recent recommendations for Hilton Grand Vacations and Marriot Vacations Worldwide Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilton Grand Vacations 0 0 8 0 3.00
Marriot Vacations Worldwide Corporation 0 2 5 0 2.71

Hilton Grand Vacations currently has a consensus target price of $38.25, suggesting a potential upside of 7.44%. Marriot Vacations Worldwide Corporation has a consensus target price of $120.14, suggesting a potential upside of 6.99%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, research analysts plainly believe Hilton Grand Vacations is more favorable than Marriot Vacations Worldwide Corporation.

Profitability

This table compares Hilton Grand Vacations and Marriot Vacations Worldwide Corporation’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%
Marriot Vacations Worldwide Corporation 7.90% 16.96% 6.53%

Institutional and Insider Ownership

97.9% of Hilton Grand Vacations shares are held by institutional investors. Comparatively, 75.6% of Marriot Vacations Worldwide Corporation shares are held by institutional investors. 0.5% of Hilton Grand Vacations shares are held by company insiders. Comparatively, 3.3% of Marriot Vacations Worldwide Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Marriot Vacations Worldwide Corporation pays an annual dividend of $1.40 per share and has a dividend yield of 1.2%. Hilton Grand Vacations does not pay a dividend. Marriot Vacations Worldwide Corporation pays out 25.2% of its earnings in the form of a dividend. Hilton Grand Vacations has raised its dividend for 2 consecutive years.

Summary

Hilton Grand Vacations beats Marriot Vacations Worldwide Corporation on 11 of the 15 factors compared between the two stocks.

About Hilton Grand Vacations

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.

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.

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