Head-To-Head Contrast: China Lodging Group, Limited (HTHT) versus Hilton Grand Vacations (HGV)

China Lodging Group, Limited (NASDAQ: HTHT) and Hilton Grand Vacations (NYSE:HGV) are both mid-cap consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Profitability

This table compares China Lodging Group, Limited and Hilton Grand Vacations’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Lodging Group, Limited 13.69% 17.26% 8.62%
Hilton Grand Vacations N/A 88.54% 6.44%

Valuation & Earnings

This table compares China Lodging Group, Limited and Hilton Grand Vacations’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
China Lodging Group, Limited $1.05 billion 7.53 $296.06 million $1.97 57.54
Hilton Grand Vacations $1.53 billion 2.29 $383.00 million N/A N/A

Hilton Grand Vacations has higher revenue and earnings than China Lodging Group, Limited.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for China Lodging Group, Limited and Hilton Grand Vacations, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Lodging Group, Limited 0 1 6 0 2.86
Hilton Grand Vacations 0 0 8 0 3.00

China Lodging Group, Limited currently has a consensus target price of $77.17, suggesting a potential downside of 31.93%. Hilton Grand Vacations has a consensus target price of $38.25, suggesting a potential upside of 8.36%. Given Hilton Grand Vacations’ stronger consensus rating and higher possible upside, analysts plainly believe Hilton Grand Vacations is more favorable than China Lodging Group, Limited.

Insider and Institutional Ownership

38.0% of China Lodging Group, Limited shares are owned by institutional investors. Comparatively, 97.9% of Hilton Grand Vacations shares are owned by institutional investors. 49.4% of China Lodging Group, Limited shares are owned by insiders. Comparatively, 0.5% of Hilton Grand Vacations shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Hilton Grand Vacations beats China Lodging Group, Limited on 7 of the 12 factors compared between the two stocks.

China Lodging Group, Limited Company Profile

China Lodging Group, Limited is a holding company. The Company is a multi-brand hotel group in China with leased, manachised and franchised models. Under the lease model, the Company directly operates hotels located on leased properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers the Company appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees. The Company has approximately 620 leased hotels; over 2,070 manachised hotels and approximately 80 franchised hotels in operation and over 20 leased hotels and approximately 660 manachised and franchised hotels under development. The Company offers approximately seven hotel brands that focus on various segments of customers: Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, Elan Hotel, HanTing Hotel and Hi Inn.

Hilton Grand Vacations Company Profile

Hilton Grand Vacations Inc. is a timeshare company that markets and sells vacation ownership intervals (VOIs), manages resorts in leisure and urban destinations, and operates a points-based vacation club. The Company operates its business across two segments: Real Estate Sales and Financing, and Resort Operations and Club Management. As of September 30, 2016, the Company had 46 resorts, representing 7,592 units, and approximately 265,000 Hilton Grand Vacations Club (the Club) members. Club members can exchange their Club points for stays at any resort or any property in the Hilton system of various brands across over 4,700 properties, as well as various vacation options, such as cruises and guided tours. VOI product allows customers to purchase a lifetime of vacations. The Company offers amenities, such as full kitchens, in-unit washers and dryers, spas and kids’ clubs along with beach-front locations.

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