OneSpaWorld (NASDAQ:OSW) and Hilton Grand Vacations (NYSE:HGV) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
OneSpaWorld has a beta of 2.65, meaning that its share price is 165% more volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.
Insider & Institutional Ownership
66.0% of OneSpaWorld shares are held by institutional investors. Comparatively, 93.8% of Hilton Grand Vacations shares are held by institutional investors. 12.1% of OneSpaWorld shares are held by company insiders. Comparatively, 1.6% of Hilton Grand Vacations shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares OneSpaWorld and Hilton Grand Vacations' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
OneSpaWorld | -98.06% | -8.29% | -5.26% |
Hilton Grand Vacations | 2.17% | 6.06% | 0.95% |
Earnings & Valuation
This table compares OneSpaWorld and Hilton Grand Vacations' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
OneSpaWorld | $562.23 million | 1.68 | $-41,030,000.00 | $0.16 | 69.38 |
Hilton Grand Vacations | $1.84 billion | 1.88 | $216 million | $2.11 | 19.22 |
Hilton Grand Vacations has higher revenue and earnings than OneSpaWorld. Hilton Grand Vacations is trading at a lower price-to-earnings ratio than OneSpaWorld, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for OneSpaWorld and Hilton Grand Vacations, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
OneSpaWorld | 0 | 1 | 2 | 0 | 2.67 |
Hilton Grand Vacations | 0 | 1 | 3 | 0 | 2.75 |
OneSpaWorld currently has a consensus price target of $7.6667, suggesting a potential downside of 30.93%. Hilton Grand Vacations has a consensus price target of $31.40, suggesting a potential downside of 22.56%. Given Hilton Grand Vacations' stronger consensus rating and higher probable upside, analysts plainly believe Hilton Grand Vacations is more favorable than OneSpaWorld.
Summary
Hilton Grand Vacations beats OneSpaWorld on 12 of the 14 factors compared between the two stocks.