Comparing Hilton Grand Vacations (NYSE:HGV) & Playa Hotels & Resorts (NASDAQ:PLYA)

Hilton Grand Vacations (NYSE:HGV) and Playa Hotels & Resorts (NASDAQ:PLYA) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Institutional & Insider Ownership

97.2% of Hilton Grand Vacations shares are owned by institutional investors. Comparatively, 74.6% of Playa Hotels & Resorts shares are owned by institutional investors. 2.3% of Hilton Grand Vacations shares are owned by insiders. Comparatively, 9.7% of Playa Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hilton Grand Vacations and Playa Hotels & Resorts’ 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%
Playa Hotels & Resorts	6.92%	14.09%	3.93%

Analyst Ratings

This is a summary of recent recommendations for Hilton Grand Vacations and Playa Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Grand Vacations	1	3	4	0	2.38
Playa Hotels & Resorts	0	5	0	0	2.00

Hilton Grand Vacations presently has a consensus price target of $46.00, indicating a potential upside of 10.40%. Playa Hotels & Resorts has a consensus price target of $12.00, indicating a potential downside of 10.98%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, equities analysts clearly believe Hilton Grand Vacations is more favorable than Playa Hotels & Resorts.

Risk and Volatility

Hilton Grand Vacations has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Playa Hotels & Resorts has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hilton Grand Vacations and Playa Hotels & Resorts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Grand Vacations	$4.98 billion	0.77	$47.00 million	$0.32	130.21
Playa Hotels & Resorts	$938.57 million	1.77	$73.81 million	$0.49	27.51

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

About Hilton Grand Vacations

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 Playa Hotels & Resorts

Playa Hotels & Resorts NV engages in the operation of hotels and resorts. The firm operates through the following geographical segments: Yucatán Peninsula, Pacific Coast, Dominican Republic, and Jamaica. It owns all-inclusive oceanfront resorts in Cancun, Los Cabos, Montego Bay, Puerto Vallarta, Playa del Carmen, and Cap Cana. The company was founded on March 28, 2013 and is headquartered in Amsterdam, the Netherlands.