Comparing Vail Resorts (NYSE:MTN) and Hilton Grand Vacations (NYSE:HGV)

Hilton Grand Vacations (NYSE:HGV) and Vail Resorts (NYSE:MTN) are both mid-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Volatility and Risk

Hilton Grand Vacations has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Vail Resorts has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Valuation & Earnings

This table compares Hilton Grand Vacations and Vail Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Grand Vacations	$5.05 billion	0.66	$81.00 million	$5.19	8.46
Vail Resorts	$2.84 billion	1.90	$147.54 million	$4.14	36.54

Vail Resorts has lower revenue, but higher earnings than Hilton Grand Vacations. Hilton Grand Vacations is trading at a lower price-to-earnings ratio than Vail Resorts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hilton Grand Vacations and Vail Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Grand Vacations	7.02%	39.73%	4.61%
Vail Resorts	5.20%	22.82%	2.61%

Institutional and Insider Ownership

97.2% of Hilton Grand Vacations shares are held by institutional investors. Comparatively, 94.9% of Vail Resorts shares are held by institutional investors. 3.1% of Hilton Grand Vacations shares are held by company insiders. Comparatively, 1.2% of Vail Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Hilton Grand Vacations and Vail Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Grand Vacations	1	10	2	0	2.08
Vail Resorts	3	9	5	0	2.12

Hilton Grand Vacations currently has a consensus price target of $49.10, suggesting a potential upside of 11.77%. Vail Resorts has a consensus price target of $150.00, suggesting a potential downside of 0.86%. Given Hilton Grand Vacations’ higher probable upside, analysts plainly believe Hilton Grand Vacations is more favorable than Vail Resorts.

Summary

Hilton Grand Vacations beats Vail Resorts on 9 of the 14 factors compared between the two stocks.

About Hilton Grand Vacations

Hilton Grand Vacations Inc. is a vacation ownership company that develops, markets and operates resorts and sells vacation ownership interests. Its offerings include points-based vacation clubs that let members use their ownership interests to book stays at participating resorts and destinations. The company serves vacationers through resorts and club offerings in the United States and international destinations, including locations in the Caribbean, Europe and Asia-Pacific. Its portfolio includes properties associated with the Hilton Grand Vacations brand and other vacation ownership brands.

About Vail Resorts

Vail Resorts, Inc. operates mountain resorts and related businesses, including lodging, ski schools, equipment rentals, dining and retail. Its resorts offer skiing and snowboarding in winter as well as hiking, mountain biking and other activities in warmer months. The company’s portfolio spans the United States, Canada, Australia and Europe. Vail Resorts also sells the Epic Pass, which provides access to participating resorts and is a key part of its season-pass business. The company’s history is closely tied to Vail Mountain in Colorado, which opened in 1962.