Critical Comparison: Hilton Grand Vacations (NYSE:HGV) vs. Oriental Land (OTCMKTS:OLCLY)

Hilton Grand Vacations (NYSE:HGV) and Oriental Land (OTCMKTS:OLCLY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Hilton Grand Vacations and Oriental Land’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Grand Vacations	1.06%	9.52%	1.39%
Oriental Land	18.13%	13.32%	8.98%

Earnings and Valuation

This table compares Hilton Grand Vacations and Oriental Land”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Grand Vacations	$4.98 billion	0.70	$47.00 million	$0.55	73.82
Oriental Land	$4.46 billion	8.12	$819.46 million	$0.52	38.69

Oriental Land has lower revenue, but higher earnings than Hilton Grand Vacations. Oriental Land 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.

Risk and Volatility

Hilton Grand Vacations has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Oriental Land has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Insider and Institutional Ownership

97.2% of Hilton Grand Vacations shares are owned by institutional investors. 2.7% of Hilton Grand Vacations shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Hilton Grand Vacations and Oriental Land, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Grand Vacations	2	2	5	0	2.33
Oriental Land	0	1	0	0	2.00

Hilton Grand Vacations currently has a consensus price target of $54.71, indicating a potential upside of 34.75%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, analysts clearly believe Hilton Grand Vacations is more favorable than Oriental Land.

Summary

Hilton Grand Vacations beats Oriental Land on 9 of the 14 factors compared between 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 Oriental Land

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.