Yum China (YUMC) Competitors

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

Is HLT or YUMC more profitable?

Hilton Worldwide has a net margin of 13.74% compared to Yum China's net margin of 8.06%. Yum China's return on equity of 13.83% beat Hilton Worldwide's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	13.74%	-54.47%	10.97%
Yum China	8.06%	13.83%	7.88%

Does the media prefer HLT or YUMC?

In the previous week, Hilton Worldwide had 4 more articles in the media than Yum China. MarketBeat recorded 10 mentions for Hilton Worldwide and 6 mentions for Yum China. Yum China's average media sentiment score of 1.43 beat Hilton Worldwide's score of 0.73 indicating that Yum China is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hilton Worldwide	5 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum China	6 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has preferable earnings and valuation, 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	$11.30B	5.34	$1.54B	$6.34	40.03
Yum China	$11.33B	1.48	$911M	$2.39	18.75

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

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

Does the MarketBeat Community favor HLT or YUMC?

Hilton Worldwide received 423 more outperform votes than Yum China when rated by MarketBeat users. Likewise, 69.78% of users gave Hilton Worldwide an outperform vote while only 64.35% of users gave Yum China an outperform vote.

Company	Underperform	Outperform
Hilton Worldwide	Outperform Votes 822 69.78%	Underperform Votes 356 30.22%
Yum China	Outperform Votes 399 64.35%	Underperform Votes 221 35.65%

Which has more risk & volatility, HLT or YUMC?

Hilton Worldwide has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500.

Do analysts rate HLT or YUMC?

Hilton Worldwide currently has a consensus target price of $245.56, suggesting a potential downside of 3.24%. Yum China has a consensus target price of $48.70, suggesting a potential upside of 8.65%. 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)	11 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.47
Yum China	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	2 Strong Buy rating(s)	3.50

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 9.5% of its earnings in the form of a dividend. Yum China pays out 40.2% 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.

Summary

Hilton Worldwide beats Yum China on 14 of the 22 factors compared between the two stocks.