Starbucks (NASDAQ:SBUX) versus Hilton Grand Vacations (NYSE:HGV) Financial Contrast

Hilton Grand Vacations (NYSE:HGV – Get Free Report) and Starbucks (NASDAQ:SBUX – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
Hilton Grand Vacations 2.86% 20.40% 2.41%
Starbucks 5.17% -34.10% 9.03%

Volatility & Risk

Hilton Grand Vacations has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hilton Grand Vacations and Starbucks”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilton Grand Vacations $5.28 billion 0.50 $81.00 million $1.77 19.21
Starbucks $37.18 billion 2.90 $1.86 billion $1.74 54.27

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

Analyst Recommendations

This is a summary of current ratings and target prices for Hilton Grand Vacations and Starbucks, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilton Grand Vacations 0 8 4 0 2.33
Starbucks 4 11 18 1 2.47

Hilton Grand Vacations presently has a consensus price target of $54.67, suggesting a potential upside of 60.74%. Starbucks has a consensus price target of $110.48, suggesting a potential upside of 17.00%. Given Hilton Grand Vacations’ higher possible upside, equities research analysts clearly believe Hilton Grand Vacations is more favorable than Starbucks.

Insider & Institutional Ownership

97.2% of Hilton Grand Vacations shares are owned by institutional investors. Comparatively, 72.3% of Starbucks shares are owned by institutional investors. 3.1% of Hilton Grand Vacations shares are owned by company insiders. Comparatively, 0.0% of Starbucks shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Starbucks beats Hilton Grand Vacations on 9 of the 15 factors compared between the two stocks.

About Hilton Grand Vacations

(Get Free Report)

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.

About Starbucks

(Get Free Report)

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.

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