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

Dividends

Wyndham Worldwide Corp pays an annual dividend of $2.32 per share and has a dividend yield of 2.4%. Hilton Grand Vacations does not pay a dividend. Wyndham Worldwide Corp pays out 43.0% of its earnings in the form of a dividend. Hilton Grand Vacations has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

97.9% of Hilton Grand Vacations shares are owned by institutional investors. Comparatively, 94.8% of Wyndham Worldwide Corp shares are owned by institutional investors. 0.5% of Hilton Grand Vacations shares are owned by company insiders. Comparatively, 2.4% of Wyndham Worldwide Corp shares are owned 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.

Earnings and Valuation

This table compares Hilton Grand Vacations and Wyndham Worldwide Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hilton Grand Vacations $1.53 billion 2.30 $383.00 million N/A N/A
Wyndham Worldwide Corp $5.24 billion 1.90 $1.34 billion $5.39 17.93

Wyndham Worldwide Corp has higher revenue and earnings than Hilton Grand Vacations.

Profitability

This table compares Hilton Grand Vacations and Wyndham Worldwide Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilton Grand Vacations N/A 88.54% 6.44%
Wyndham Worldwide Corp 10.17% 91.17% 6.28%

Analyst Ratings

This is a summary of current ratings and recommmendations for Hilton Grand Vacations and Wyndham Worldwide Corp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilton Grand Vacations 0 0 8 0 3.00
Wyndham Worldwide Corp 1 4 4 0 2.33

Hilton Grand Vacations presently has a consensus price target of $38.25, suggesting a potential upside of 7.81%. Wyndham Worldwide Corp has a consensus price target of $96.88, suggesting a potential upside of 0.23%. Given Hilton Grand Vacations’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Hilton Grand Vacations is more favorable than Wyndham Worldwide Corp.

Summary

Hilton Grand Vacations beats Wyndham Worldwide Corp on 8 of the 14 factors compared between the two stocks.

About Hilton Grand Vacations

Hilton Grand Vacations Inc. is a timeshare company that markets and sells vacation ownership intervals (VOIs), manages resorts in leisure and urban destinations, and operates a points-based vacation club. The Company operates its business across two segments: Real Estate Sales and Financing, and Resort Operations and Club Management. As of September 30, 2016, the Company had 46 resorts, representing 7,592 units, and approximately 265,000 Hilton Grand Vacations Club (the Club) members. Club members can exchange their Club points for stays at any resort or any property in the Hilton system of various brands across over 4,700 properties, as well as various vacation options, such as cruises and guided tours. VOI product allows customers to purchase a lifetime of vacations. The Company offers amenities, such as full kitchens, in-unit washers and dryers, spas and kids’ clubs along with beach-front locations.

About Wyndham Worldwide Corp

Wyndham Worldwide Corporation is a hospitality company. The Company offers a range of hospitality services and products through its global portfolio of brands. The Company operates through three segments: Wyndham Hotel Group, Wyndham Destination Network and Wyndham Vacation Ownership. The Company’s brands include Wyndham Hotels and Resorts, Ramada, Days Inn, Super 8, Howard Johnson, Wingate by Wyndham, Microtel Inns & Suites by Wyndham, TRYP by Wyndham, Dolce Hotels and Resorts, RCI, Landal GreenParks, Novasol, Hoseasons, cottages.com, James Villa Holidays, Wyndham Vacation Rentals, Wyndham Vacation Resorts, Shell Vacations Club and WorldMark by Wyndham. As of December 31, 2016, its Wyndham Hotel Group had 8,035 hotels and over 697,600 hotel rooms around the world. Its Wyndham Destination Network segment offers non-hotel accommodations. The Wyndham Vacation Ownership segment develops and acquires vacation ownership resorts.

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