Financial Comparison: Hilton Worldwide (NYSE:HLT) & Global Business Travel Group (NYSE:GBTG)

Global Business Travel Group (NYSE:GBTG) and Hilton Worldwide (NYSE:HLT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Global Business Travel Group and Hilton Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Global Business Travel Group	2.77%	2.47%	0.80%
Hilton Worldwide	12.69%	-35.24%	11.84%

Earnings & Valuation

This table compares Global Business Travel Group and Hilton Worldwide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Business Travel Group	$2.72 billion	1.82	$109.00 million	$0.17	55.85
Hilton Worldwide	$12.04 billion	5.90	$1.46 billion	$6.81	46.38

Hilton Worldwide has higher revenue and earnings than Global Business Travel Group. Hilton Worldwide is trading at a lower price-to-earnings ratio than Global Business Travel Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Global Business Travel Group and Hilton Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Business Travel Group	0	6	2	0	2.25
Hilton Worldwide	0	8	15	2	2.76

Global Business Travel Group presently has a consensus target price of $8.90, indicating a potential downside of 6.27%. Hilton Worldwide has a consensus target price of $354.00, indicating a potential upside of 12.09%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe Hilton Worldwide is more favorable than Global Business Travel Group.

Risk & Volatility

Global Business Travel Group has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, Hilton Worldwide has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Institutional & Insider Ownership

82.5% of Global Business Travel Group shares are held by institutional investors. Comparatively, 95.9% of Hilton Worldwide shares are held by institutional investors. 5.4% of Global Business Travel Group shares are held by company insiders. Comparatively, 2.7% of Hilton Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Hilton Worldwide beats Global Business Travel Group on 12 of the 15 factors compared between the two stocks.

About Global Business Travel Group

Global Business Travel Group, Inc. provides business-to-business (B2B) travel platform in the United States and internationally. The company's platform offers a suite of technology-enabled solutions to business travelers and clients; travel content suppliers, such as airlines, hotels, ground transportation, and aggregators; and third-party travel agencies. It also provides consulting, meetings and events planning, and outsourced services. Global Business Travel Group, Inc. is based in New York, New York.

About Hilton Worldwide

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. The company was founded in 1919 and is headquartered in McLean, Virginia.