Yum China (YUMC) Competitors

Hilton Worldwide (NYSE:HLT) and Yum China (NYSE:YUMC) are both large-cap restaurants, hotels, motels companies, but which is the better stock? We will compare the two companies based on the strength of their risk, media sentiment, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Which has higher valuation and earnings, HLT or YUMC?

Hilton Worldwide has higher earnings, but lower revenue 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Worldwide	$11.17B	5.85	$1.54B	$6.51	42.70
Yum China	$11.30B	1.46	$911M	$2.42	18.47

Is HLT or YUMC more profitable?

Hilton Worldwide has a net margin of 13.84% compared to Yum China's net margin of 8.04%. Yum China's return on equity of 14.13% beat Hilton Worldwide's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	13.84%	-46.13%	11.38%
Yum China	8.04%	14.13%	8.19%

Is HLT or YUMC a better dividend stock?

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Yum China pays an annual dividend of $0.96 per share and has a dividend yield of 2.1%. Hilton Worldwide pays out 9.2% of its earnings in the form of a dividend. Yum China pays out 39.7% 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. Yum China has increased its dividend for 5 consecutive years. Yum China is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media refer more to HLT or YUMC?

In the previous week, Hilton Worldwide had 8 more articles in the media than Yum China. MarketBeat recorded 24 mentions for Hilton Worldwide and 16 mentions for Yum China. Hilton Worldwide's average media sentiment score of 1.39 beat Yum China's score of 1.37 indicating that Hilton Worldwide is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hilton Worldwide	20 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum China	12 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more volatility & risk, HLT or YUMC?

Hilton Worldwide has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.22, suggesting that its share price is 78% less volatile than the S&P 500.

Do institutionals & insiders have more ownership in HLT or YUMC?

95.9% of Hilton Worldwide shares are held by institutional investors. Comparatively, 85.6% of Yum China shares are held by institutional investors. 2.6% of Hilton Worldwide shares are held by company insiders. Comparatively, 0.4% of Yum China shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Do analysts rate HLT or YUMC?

Hilton Worldwide currently has a consensus price target of $264.40, suggesting a potential downside of 4.89%. Yum China has a consensus price target of $60.00, suggesting a potential upside of 34.24%. Given Yum China's stronger consensus rating and higher probable upside, analysts clearly believe Yum China is more favorable than Hilton Worldwide.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0 Sell rating(s)	9 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.56
Yum China	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	2 Strong Buy rating(s)	3.67

Summary

Hilton Worldwide beats Yum China on 13 of the 20 factors compared between the two stocks.