Head-To-Head Comparison: Hyatt Hotels Corporation (H) versus Intercontinental Hotels Group (IHG)

Intercontinental Hotels Group (NYSE: IHG) and Hyatt Hotels Corporation (NYSE:H) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitabiliy, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Intercontinental Hotels Group and Hyatt Hotels Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intercontinental Hotels Group 2 5 1 0 1.88
Hyatt Hotels Corporation 1 9 2 0 2.08

Intercontinental Hotels Group currently has a consensus price target of $44.00, indicating a potential downside of 21.71%. Hyatt Hotels Corporation has a consensus price target of $54.25, indicating a potential downside of 1.81%. Given Hyatt Hotels Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Hyatt Hotels Corporation is more favorable than Intercontinental Hotels Group.

Profitability

This table compares Intercontinental Hotels Group and Hyatt Hotels Corporation’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
Hyatt Hotels Corporation 5.30% 7.25% 3.65%

Insider & Institutional Ownership

6.8% of Intercontinental Hotels Group shares are held by institutional investors. Comparatively, 31.0% of Hyatt Hotels Corporation shares are held by institutional investors. 25.5% of Hyatt Hotels Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Intercontinental Hotels Group and Hyatt Hotels Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intercontinental Hotels Group $1.72 billion 6.21 $757.00 million N/A N/A
Hyatt Hotels Corporation $2.68 billion 0.72 $663.00 million $1.81 30.52

Intercontinental Hotels Group has higher revenue, but lower earnings than Hyatt Hotels Corporation.

Volatility & Risk

Intercontinental Hotels Group has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Hyatt Hotels Corporation has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500.

Dividends

Intercontinental Hotels Group pays an annual dividend of $0.96 per share and has a dividend yield of 1.7%. Hyatt Hotels Corporation does not pay a dividend. Hyatt Hotels Corporation has raised its dividend for 4 consecutive years.

Summary

Hyatt Hotels Corporation beats Intercontinental Hotels Group on 10 of the 14 factors compared between the two stocks.

Intercontinental Hotels Group Company Profile

InterContinental Hotels Group PLC is a hotel company. The Company franchises its brands to, and manages hotels on behalf of, third-party hotel owners. Its segments include The Americas; Europe; Asia, Middle East and Africa (AMEA); Greater China, and Central. It operates a portfolio of hotel brands, including InterContinental, HUALUXE, Kimpton, Crowne Plaza, Hotel Indigo, EVEN Hotels, Holiday Inn, Holiday Inn Express, Staybridge Suites Hotels, Holiday Inn Resort, Holiday Inn Club Vacations and Candlewood Suites Hotels. As of December 31, 2016, The Americas pipeline totaled 945 hotels (102,451 rooms). As of December 31, 2016, the Europe pipeline totaled 137 hotels (23,954 rooms). As of December 31, 2016, the AMEA pipeline totaled 149 hotels (39,643 rooms). As of December 31, 2016, the Greater China pipeline totaled 239 hotels (64,028 rooms). As of April 21, 2017, it had 5,200 hotels and 777,000 rooms in its system. As of April 21, 2017, it operated in over 100 countries globally.

Hyatt Hotels Corporation Company Profile

Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.

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