Financial Review: Wynn Macau (OTCMKTS:WYNMY) versus Hilton Worldwide (NYSE:HLT)

Hilton Worldwide (NYSE:HLT) and Wynn Macau (OTCMKTS:WYNMY) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Hilton Worldwide and Wynn Macau, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0	9	8	1	2.56
Wynn Macau	1	0	0	1	2.50

Hilton Worldwide presently has a consensus price target of $264.40, suggesting a potential downside of 2.86%. Given Hilton Worldwide’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hilton Worldwide is more favorable than Wynn Macau.

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Wynn Macau pays an annual dividend of $0.40 per share and has a dividend yield of 4.7%. Hilton Worldwide pays out 9.2% of its earnings in the form of a dividend.

Risk and Volatility

Hilton Worldwide has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Wynn Macau has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.

Profitability

This table compares Hilton Worldwide and Wynn Macau’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	13.84%	-46.13%	11.38%
Wynn Macau	N/A	N/A	N/A

Insider and Institutional Ownership

95.9% of Hilton Worldwide shares are held by institutional investors. 2.6% of Hilton Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Hilton Worldwide and Wynn Macau”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Worldwide	$11.17 billion	5.73	$1.54 billion	$6.51	41.81
Wynn Macau	$3.68 billion	1.21	$410.01 million	N/A	N/A

Hilton Worldwide has higher revenue and earnings than Wynn Macau.

Summary

Hilton Worldwide beats Wynn Macau on 11 of the 14 factors compared between the two stocks.

About Hilton Worldwide

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. The company was founded in 1919 and is headquartered in McLean, Virginia.

About Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.