Analyzing Hilton Worldwide (NYSE:HLT) & Sands China (OTCMKTS:SCHYY)

Sands China (OTCMKTS:SCHYY) and Hilton Worldwide (NYSE:HLT) are both large-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Sands China and Hilton Worldwide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sands China	0	3	0	1	2.50
Hilton Worldwide	0	7	10	2	2.74

Hilton Worldwide has a consensus target price of $283.31, suggesting a potential upside of 3.18%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe Hilton Worldwide is more favorable than Sands China.

Earnings and Valuation

This table compares Sands China 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
Sands China	$7.08 billion	2.84	$1.05 billion	N/A	N/A
Hilton Worldwide	$11.17 billion	5.71	$1.54 billion	$6.91	39.74

Hilton Worldwide has higher revenue and earnings than Sands China.

Profitability

This table compares Sands China and Hilton Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sands China	N/A	N/A	N/A
Hilton Worldwide	14.19%	-42.78%	11.52%

Volatility and Risk

Sands China has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Hilton Worldwide has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Dividends

Sands China pays an annual dividend of $0.54 per share and has a dividend yield of 2.2%. Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Hilton Worldwide pays out 8.7% of its earnings in the form of a dividend.

Insider and Institutional Ownership

95.9% of Hilton Worldwide shares are held by institutional investors. 2.6% of Hilton Worldwide 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.

Summary

Hilton Worldwide beats Sands China on 12 of the 15 factors compared between the two stocks.

About Sands China

Sands China Ltd. develops, owns, and operates integrated resorts and casinos in Macao. It owns and operates The Venetian Macao, The Londoner Macao, The Parisian Macao resort, The Plaza Macao, and The Sands Macao casino; the Cotai Expo, a convention and exhibition hall; and the Cotai Arena and the Londoner Arena entertainment venues, as well as Cotai Water Jet ferry for leisure and business travelers. It also offers ferry transportation and leasing services, and pontoon leasing; gaming and other related activities; travel and tourism agency services; security services; human resources administration services; and mall management services, as well as outsourcing services, including information technology, accounting, hotel management, and marketing. The company was incorporated in 2009 and is headquartered in Taipa, Macau. Sands China Ltd. is a subsidiary of Las Vegas Sands Corp.

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.