Hilton Grand Vacations (HGV) & The Competition Critical Review

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

Profitability

This table compares Hilton Grand Vacations and its peers’ 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%	1.63%

Analyst Ratings

This is a summary of current ratings for Hilton Grand Vacations and its peers, as provided 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	271	1600	1602	51	2.41

Hilton Grand Vacations currently has a consensus target price of $46.00, indicating a potential downside of 2.54%. As a group, “HOTELS & MOTELS” companies have a potential upside of 2.05%. Given Hilton Grand Vacations’ peers stronger consensus rating and higher probable upside, analysts clearly believe Hilton Grand Vacations has less favorable growth aspects than its peers.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Hilton Grand Vacations	$4.98 billion	$47.00 million	147.50
Hilton Grand Vacations Competitors	$3.31 billion	$347.52 million	24.91

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

Institutional & 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. 2.3% of Hilton Grand Vacations shares are owned by insiders. Comparatively, 26.7% of shares of all “HOTELS & MOTELS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

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

Summary

Hilton Grand Vacations beats its peers on 8 of the 13 factors compared.

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.