Oriental Land (OTCMKTS:OLCLY) & Hilton Grand Vacations (NYSE:HGV) Financial Analysis

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

Insider & Institutional Ownership

97.2% of Hilton Grand Vacations shares are held by institutional investors. 2.3% of Hilton Grand Vacations shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oriental Land	$4.46 billion	8.05	$819.46 million	$0.52	38.35
Hilton Grand Vacations	$4.98 billion	0.68	$47.00 million	$0.55	72.17

Oriental Land has higher earnings, but lower revenue 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 & Volatility

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Oriental Land and Hilton Grand Vacations, as provided by MarketBeat.com.

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

Hilton Grand Vacations has a consensus target price of $54.71, suggesting a potential upside of 37.84%. Given Hilton Grand Vacations’ stronger consensus rating and higher probable upside, analysts clearly believe Hilton Grand Vacations is more favorable than Oriental Land.

Profitability

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

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

Summary

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

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.

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.