Hilton Grand Vacations (NYSE:HGV – Get Free Report) and Choice Hotels International (NYSE:CHH – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Analyst Ratings
This is a summary of recent ratings and target prices for Hilton Grand Vacations and Choice Hotels International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hilton Grand Vacations | 1 | 3 | 4 | 0 | 2.38 |
| Choice Hotels International | 4 | 6 | 3 | 0 | 1.92 |
Hilton Grand Vacations presently has a consensus price target of $46.00, suggesting a potential downside of 5.49%. Choice Hotels International has a consensus price target of $133.92, suggesting a potential upside of 0.35%. Given Choice Hotels International’s higher possible upside, analysts plainly believe Choice Hotels International is more favorable than Hilton Grand Vacations.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hilton Grand Vacations | $4.98 billion | 0.90 | $47.00 million | $0.32 | 152.09 |
| Choice Hotels International | $1.58 billion | 3.91 | $299.67 million | $6.55 | 20.37 |
Choice Hotels International has lower revenue, but higher earnings than Hilton Grand Vacations. Choice Hotels International 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.
Insider and Institutional Ownership
97.2% of Hilton Grand Vacations shares are held by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are held by institutional investors. 2.7% of Hilton Grand Vacations shares are held by company insiders. Comparatively, 24.0% of Choice Hotels International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Hilton Grand Vacations and Choice Hotels International’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% |
| Choice Hotels International | 19.75% | -377.51% | 13.07% |
Volatility & Risk
Hilton Grand Vacations has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
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 Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
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