Eldorado Resorts (NYSE: HLT) and Hilton Hotels Co. Common Stock (NYSE:HLT) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Valuation & Earnings

This table compares Eldorado Resorts and Hilton Hotels Co. Common Stock’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eldorado Resorts $1.47 billion 2.52 $73.93 million $0.01 4,800.00
Hilton Hotels Co. Common Stock $9.14 billion 2.53 $1.26 billion $2.00 38.79

Hilton Hotels Co. Common Stock has higher revenue and earnings than Eldorado Resorts. Hilton Hotels Co. Common Stock is trading at a lower price-to-earnings ratio than Eldorado Resorts, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Eldorado Resorts has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Hilton Hotels Co. Common Stock has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Eldorado Resorts and Hilton Hotels Co. Common Stock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eldorado Resorts 0 1 7 0 2.88
Hilton Hotels Co. Common Stock 0 8 8 1 2.59

Eldorado Resorts presently has a consensus price target of $48.81, suggesting a potential upside of 1.68%. Hilton Hotels Co. Common Stock has a consensus price target of $86.00, suggesting a potential upside of 10.85%. Given Hilton Hotels Co. Common Stock’s higher probable upside, analysts plainly believe Hilton Hotels Co. Common Stock is more favorable than Eldorado Resorts.

Profitability

This table compares Eldorado Resorts and Hilton Hotels Co. Common Stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eldorado Resorts 9.99% 11.64% 3.06%
Hilton Hotels Co. Common Stock 15.53% 50.91% 5.23%

Insider and Institutional Ownership

88.3% of Eldorado Resorts shares are owned by institutional investors. Comparatively, 97.6% of Hilton Hotels Co. Common Stock shares are owned by institutional investors. 1.5% of Eldorado Resorts shares are owned by insiders. Comparatively, 1.7% of Hilton Hotels Co. Common Stock shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Hilton Hotels Co. Common Stock pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Eldorado Resorts does not pay a dividend. Hilton Hotels Co. Common Stock pays out 30.0% of its earnings in the form of a dividend. Hilton Hotels Co. Common Stock has raised its dividend for 2 consecutive years.

Summary

Hilton Hotels Co. Common Stock beats Eldorado Resorts on 15 of the 18 factors compared between the two stocks.

Eldorado Resorts Company Profile

Eldorado Resorts, Inc., a gaming and hospitality company, owns and operates gaming facilities in Ohio, Louisiana, Nevada, Pennsylvania, West Virginia, Colorado, Florida, Iowa, Mississippi, and Missouri. It owns and operates Eldorado Resort Casino Reno, a 814-room hotel, casino and entertainment facility; Silver Legacy Resort Casino, a 1,711-room themed hotel and casino; Circus Circus Reno, a 1,571-room hotel-casino and entertainment complex; Eldorado Resort Casino Shreveport, a 403-room, all suite art deco-style hotel and tri-level riverboat dockside casino; Mountaineer Casino, Racetrack & Resort, a 357-room hotel, casino, entertainment, and live thoroughbred horse racing facility; Presque Isle Downs & Casino, a casino and live thoroughbred horse racing facility; and Eldorado Gaming Scioto Downs, a modern racino. The company also owns and operates Isle Casino Hotel?Black Hawk, a land-based casino; Lady Luck Casino?Black Hawk, a land-based casino; Isle Casino Racing Pompano Park, a casino and harness racing track; Isle Casino Bettendorf, a land-based single-level casino; Isle Casino Waterloo, a SINGLE-level land-based casino; Isle of Capri Casino Hotel Lake Charles, a gaming vessel; Isle of Capri Casino Lula, a two dockside casino; Lady Luck Casino Vicksburg, a dockside casino; Isle of Capri Casino Boonville, a single-level dockside casino; Isle Casino Cape Girardeau, a dockside casino and pavilion and entertainment center; Lady Luck Casino Caruthersville, a riverboat casino; Isle of Capri Casino Kansas City, a dockside casino; and Lady Luck Casino Nemacolin, a casino property, as well as operates Racelinebet.com, which offers online and telephone wagering services on horse races. As of December 31, 2017, it owned and operated approximately 950,000 square feet of casino space with approximately 21,000 slot machines and video lottery terminals, 600 table and poker games, and 7,000 hotel rooms. Eldorado Resorts, Inc. was founded in 1973 and is based in Reno, Nevada.

Hilton Hotels Co. Common Stock Company Profile

Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises hotels and resorts. It operates through two segments, Management and Franchise; and Ownership. The company engages in the hotel management and licensing of its brands to franchisees. It operates hotels under the Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Hilton Hotels & Resorts, Curio – A Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Tapestry Collection by Hilton, and Hilton Grand Vacations brands. The company operates in North America, South America, and Central America, including all Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of July 11, 2018, it had approximately 5,300 properties with approximately 863,000 rooms in 106 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

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