Comparing Hilton Grand Vacations (NYSE:HGV) & GreenTree Hospitality Group (NYSE:GHG)

Hilton Grand Vacations (NYSE:HGV) and GreenTree Hospitality Group (NYSE:GHG) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Risk and Volatility

Hilton Grand Vacations has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, GreenTree Hospitality Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hilton Grand Vacations and GreenTree Hospitality Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Grand Vacations	$4.98 billion	0.74	$47.00 million	$0.32	125.28
GreenTree Hospitality Group	$184.05 million	1.10	$15.07 million	$0.43	4.63

Hilton Grand Vacations has higher revenue and earnings than GreenTree Hospitality Group. GreenTree Hospitality Group 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.

Profitability

This table compares Hilton Grand Vacations and GreenTree Hospitality Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Grand Vacations	0.68%	9.93%	1.67%
GreenTree Hospitality Group	8.67%	7.51%	2.29%

Insider and Institutional Ownership

97.2% of Hilton Grand Vacations shares are held by institutional investors. Comparatively, 8.1% of GreenTree Hospitality Group shares are held by institutional investors. 2.7% of Hilton Grand Vacations shares are held by insiders. Comparatively, 88.7% of GreenTree Hospitality Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hilton Grand Vacations and GreenTree Hospitality Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Grand Vacations	1	3	4	0	2.38
GreenTree Hospitality Group	0	0	0	0	0.00

Hilton Grand Vacations presently has a consensus target price of $46.00, suggesting a potential upside of 14.74%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Hilton Grand Vacations is more favorable than GreenTree Hospitality Group.

Summary

Hilton Grand Vacations beats GreenTree Hospitality Group 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 GreenTree Hospitality Group

GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree Inns brand in the People's Republic of China. It also engages in investment holding activities; and provision of information technology services. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.