Critical Survey: Hilton Grand Vacations (HGV) versus Its Peers

Hilton Grand Vacations (NYSE:HGV) is one of 35 publicly-traded companies in the “HOTELS & MOTELS” industry, but how does it compare to its rivals? We will compare Hilton Grand Vacations to related companies based on the strength of its profitability, earnings, analyst recommendations, valuation, dividends, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings for Hilton Grand Vacations and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Grand Vacations	1	3	4	0	2.38
Hilton Grand Vacations Competitors	269	1597	1599	50	2.41

Hilton Grand Vacations presently has a consensus target price of $46.00, suggesting a potential upside of 17.10%. As a group, “HOTELS & MOTELS” companies have a potential upside of 9.55%. Given Hilton Grand Vacations’ higher probable upside, analysts clearly believe Hilton Grand Vacations is more favorable than its rivals.

Risk and Volatility

Hilton Grand Vacations has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500. Comparatively, Hilton Grand Vacations’ rivals have a beta of 1.00, meaning that their average share price is 0% more volatile than the S&P 500.

Institutional and Insider Ownership

97.2% of Hilton Grand Vacations shares are owned by institutional investors. Comparatively, 71.1% of shares of all “HOTELS & MOTELS” companies are owned by institutional investors. 2.7% of Hilton Grand Vacations shares are owned by insiders. Comparatively, 26.8% of shares of all “HOTELS & MOTELS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Hilton Grand Vacations and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hilton Grand Vacations	$4.98 billion	$47.00 million	122.76
Hilton Grand Vacations Competitors	$3.35 billion	$347.37 million	23.17

Hilton Grand Vacations has higher revenue, but lower earnings than its rivals. Hilton Grand Vacations is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hilton Grand Vacations	0.68%	9.93%	1.67%
Hilton Grand Vacations Competitors	-12.17%	-49.20%	1.64%

Summary

Hilton Grand Vacations beats its rivals on 9 of the 13 factors compared.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans. Resort Operations and Club Management segment manages and operates the clubs which offers exchange, leisure travel, and reservation services, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs, and provides ancillary services including food and beverage, retail and spa at timeshare properties. Hilton Grand Vacations Inc. was founded in 1992 and is headquartered in Orlando, Florida.