Contrasting Wyndham Hotels & Resorts (NYSE:WH) and Hilton Grand Vacations (NYSE:HGV)

Wyndham Hotels & Resorts (NYSE:WH) and Hilton Grand Vacations (NYSE:HGV) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Profitability

This table compares Wyndham Hotels & Resorts and Hilton Grand Vacations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wyndham Hotels & Resorts	23.10%	60.79%	8.56%
Hilton Grand Vacations	1.14%	9.71%	1.53%

Analyst Ratings

This is a summary of recent recommendations and price targets for Wyndham Hotels & Resorts and Hilton Grand Vacations, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wyndham Hotels & Resorts	0	1	11	0	2.92
Hilton Grand Vacations	1	1	5	0	2.57

Wyndham Hotels & Resorts presently has a consensus price target of $106.98, suggesting a potential upside of 26.24%. Hilton Grand Vacations has a consensus price target of $53.29, suggesting a potential upside of 17.32%. Given Wyndham Hotels & Resorts’ stronger consensus rating and higher possible upside, research analysts plainly believe Wyndham Hotels & Resorts is more favorable than Hilton Grand Vacations.

Volatility & Risk

Wyndham Hotels & Resorts has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

93.5% of Wyndham Hotels & Resorts shares are held by institutional investors. Comparatively, 97.2% of Hilton Grand Vacations shares are held by institutional investors. 2.5% of Wyndham Hotels & Resorts shares are held by insiders. Comparatively, 2.7% of Hilton Grand Vacations shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wyndham Hotels & Resorts	$1.41 billion	4.60	$289.00 million	$4.28	19.80
Hilton Grand Vacations	$4.98 billion	0.81	$47.00 million	$0.55	82.58

Wyndham Hotels & Resorts has higher earnings, but lower revenue than Hilton Grand Vacations. Wyndham 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.

Summary

Wyndham Hotels & Resorts beats Hilton Grand Vacations on 9 of the 14 factors compared between the two stocks.

About Wyndham Hotels & Resorts

Wyndham Hotels & Resorts, Inc. engages in the franchise and operation of hotels under the Wyndham brand. It operates through the Hotel Franchising and Hotel Management segments. The Hotel Franchising segment focuses on licensing the company’s lodging brands and providing related services to third-party hotel owners and others. The Hotel Management segment provides management services. The company was founded in 1990 and is headquartered in Parsippany, NJ.

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.