Critical Contrast: Hilton Worldwide (HLT) versus The Competition

Hilton Worldwide (NYSE:HLT – Get Free Report) is one of 383 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its competitors? We will compare Hilton Worldwide to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Profitability

This table compares Hilton Worldwide and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilton Worldwide 13.40% -33.78% 12.16%
Hilton Worldwide Competitors 8.51% -42.06% 2.05%

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Hilton Worldwide pays out 8.1% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Hilton Worldwide and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilton Worldwide 0 9 16 2 2.74
Hilton Worldwide Competitors 3835 17324 25643 908 2.50

Hilton Worldwide currently has a consensus price target of $365.08, indicating a potential downside of 2.49%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 53.79%. Given Hilton Worldwide’s competitors higher possible upside, analysts clearly believe Hilton Worldwide has less favorable growth aspects than its competitors.

Volatility & Risk

Hilton Worldwide has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Hilton Worldwide’s competitors have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

95.9% of Hilton Worldwide shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 2.7% of Hilton Worldwide shares are owned by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Hilton Worldwide and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hilton Worldwide $12.69 billion $1.46 billion 50.60
Hilton Worldwide Competitors $3.42 billion $250.18 million -160.59

Hilton Worldwide has higher revenue and earnings than its competitors. Hilton Worldwide is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Hilton Worldwide beats its competitors on 11 of the 15 factors compared.

About Hilton Worldwide

(Get Free Report)

Hilton Worldwide Holdings Inc. is a global hospitality company that develops, manages, franchises and licenses hotels and resorts. Its portfolio serves a range of travelers, from luxury and leisure guests to business travelers and extended-stay customers. Hilton also operates a vacation ownership business through Hilton Grand Vacations under a long-term brand and licensing relationship. The company’s brands include Waldorf Astoria, Conrad, Hilton Hotels & Resorts, DoubleTree, Embassy Suites, Hilton Garden Inn, Hampton, Homewood Suites and Hilton Honors, its guest loyalty program.

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