HLT vs. YUMC, CAVA, ARMK, BROS, TNL, PLYA, HDL, FWRG, BALY, and CVEO
Should you be buying Hilton Worldwide stock or one of its competitors? The main competitors of Hilton Worldwide include Yum China (YUMC), CAVA Group (CAVA), Aramark (ARMK), Dutch Bros (BROS), Travel + Leisure (TNL), Playa Hotels & Resorts (PLYA), Super Hi International (HDL), First Watch Restaurant Group (FWRG), Bally's (BALY), and Civeo (CVEO). These companies are all part of the "restaurants, hotels, motels" industry.
Yum China (NYSE:YUMC) and Hilton Worldwide (NYSE:HLT) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, analyst recommendations, institutional ownership, dividends, valuation and profitability.
Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Yum China pays out 32.2% of its earnings in the form of a dividend. Hilton Worldwide pays out 13.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Hilton Worldwide has a net margin of 11.41% compared to Hilton Worldwide's net margin of 7.49%. Hilton Worldwide's return on equity of 11.90% beat Yum China's return on equity.
85.6% of Yum China shares are owned by institutional investors. Comparatively, 95.9% of Hilton Worldwide shares are owned by institutional investors. 0.3% of Yum China shares are owned by insiders. Comparatively, 2.5% of Hilton Worldwide shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
In the previous week, Hilton Worldwide had 9 more articles in the media than Yum China. MarketBeat recorded 17 mentions for Hilton Worldwide and 8 mentions for Yum China. Yum China's average media sentiment score of 0.73 beat Hilton Worldwide's score of 0.52 indicating that Hilton Worldwide is being referred to more favorably in the news media.
Yum China has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500. Comparatively, Hilton Worldwide has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500.
Hilton Worldwide received 413 more outperform votes than Yum China when rated by MarketBeat users. Likewise, 70.60% of users gave Hilton Worldwide an outperform vote while only 64.19% of users gave Yum China an outperform vote.
Yum China currently has a consensus target price of $54.65, indicating a potential upside of 82.29%. Hilton Worldwide has a consensus target price of $209.16, indicating a potential downside of 2.98%. Given Hilton Worldwide's stronger consensus rating and higher probable upside, equities analysts clearly believe Yum China is more favorable than Hilton Worldwide.
Hilton Worldwide has lower revenue, but higher earnings than Yum China. Yum China is trading at a lower price-to-earnings ratio than Hilton Worldwide, indicating that it is currently the more affordable of the two stocks.
Summary
Hilton Worldwide beats Yum China on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HLT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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