Contrasting Civeo (NYSE:CVEO) and Hyatt Hotels (NYSE:H)

Civeo (NYSE:CVEO) and Hyatt Hotels (NYSE:H) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Civeo and Hyatt Hotels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Civeo	0	0	1	0	3.00
Hyatt Hotels	1	9	8	1	2.47

Civeo presently has a consensus target price of $27.00, suggesting a potential upside of 20.53%. Hyatt Hotels has a consensus target price of $149.72, suggesting a potential upside of 13.62%. Given Civeo’s stronger consensus rating and higher possible upside, research analysts plainly believe Civeo is more favorable than Hyatt Hotels.

Risk and Volatility

Civeo has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500. Comparatively, Hyatt Hotels has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Institutional and Insider Ownership

81.4% of Civeo shares are owned by institutional investors. Comparatively, 73.5% of Hyatt Hotels shares are owned by institutional investors. 4.7% of Civeo shares are owned by insiders. Comparatively, 23.7% of Hyatt Hotels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Civeo pays an annual dividend of $1.00 per share and has a dividend yield of 4.5%. Hyatt Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.5%. Civeo pays out -61.7% of its earnings in the form of a dividend. Hyatt Hotels pays out 7.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Civeo has increased its dividend for 1 consecutive years and Hyatt Hotels has increased its dividend for 1 consecutive years. Civeo is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Civeo and Hyatt Hotels”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Civeo	$682.12 million	0.44	-$17.07 million	($1.62)	-13.83
Hyatt Hotels	$6.65 billion	1.89	$1.30 billion	$7.70	17.11

Hyatt Hotels has higher revenue and earnings than Civeo. Civeo is trading at a lower price-to-earnings ratio than Hyatt Hotels, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Civeo and Hyatt Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Civeo	-3.30%	-7.23%	-4.20%
Hyatt Hotels	11.94%	8.98%	2.62%

Summary

Hyatt Hotels beats Civeo on 12 of the 17 factors compared between the two stocks.

About Civeo

Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile assets, including modular, skid-mounted accommodation, and central facilities that provide short to medium-term accommodation needs. It offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services, and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as lodging and catering services. It serves oil, mining, engineering, and oilfield and mining service companies. Civeo Corporation was founded in 1977 and is headquartered in Houston, Texas.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units. It operates its properties under the Park Hyatt, Grand Hyatt, Hyatt Regency, Hyatt, Hyatt vacation Club, Hyatt Place, Hyatt House, Hyatt Studios, UrCove, Miraval, Alila, Andaz, Thompson Hotels, Dream Hotels, Hyatt Centric, Caption by Hyatt, The Unbound Collection by Hyatt, Destination by Hyatt, JdV by Hyatt, Hyatt Ziva, Hyatt Zilara, Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Breathless Resorts & Spas, Dreams Resorts & Spas, Hyatt Vivid Hotel & Resorts, Alua Hotels & Resorts, Sunscape Resorts & Spas, Maison Métier, and The Barnett brand name. The company offers short-term vacation rental platform, Homes & Hideaways by World of Hyatt, that features direct booking for short-term private home rentals in the United States. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal organizations; travel agency and luxury organizations; and a group of individual consumers. It also operates World of Hyatt loyalty program, which rewards points that can be redeemed for hotel nights and other rewards. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.