Reviewing Hilton Worldwide (HLT) & Its Rivals

Hilton Worldwide (NYSE:HLT) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its competitors? We will compare Hilton Worldwide to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Hilton Worldwide pays out 8.1% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend.

Risk and Volatility

Hilton Worldwide has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Hilton Worldwide’s competitors have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

95.9% of Hilton Worldwide shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 2.7% of Hilton Worldwide shares are owned by company insiders. Comparatively, 22.1% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Hilton Worldwide and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	13.40%	-33.78%	12.16%
Hilton Worldwide Competitors	8.57%	-41.62%	2.16%

Earnings & Valuation

This table compares Hilton Worldwide and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hilton Worldwide	$12.69 billion	$1.46 billion	51.32
Hilton Worldwide Competitors	$3.43 billion	$250.18 million	-159.99

Hilton Worldwide has higher revenue and earnings than its competitors. Hilton Worldwide is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Hilton Worldwide and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0	9	16	2	2.74
Hilton Worldwide Competitors	3819	17310	25630	908	2.50

Hilton Worldwide currently has a consensus target price of $365.08, indicating a potential downside of 3.86%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 59.20%. Given Hilton Worldwide’s competitors higher probable upside, analysts clearly believe Hilton Worldwide has less favorable growth aspects than its competitors.

Summary

Hilton Worldwide beats its competitors on 11 of the 15 factors compared.

About Hilton Worldwide

Hilton Worldwide Holdings Inc. is a global hospitality company that develops, manages, franchises and licenses hotels and resorts. Its portfolio serves a range of travelers, from luxury and leisure guests to business travelers and extended-stay customers. Hilton also operates a vacation ownership business through Hilton Grand Vacations under a long-term brand and licensing relationship. The company’s brands include Waldorf Astoria, Conrad, Hilton Hotels & Resorts, DoubleTree, Embassy Suites, Hilton Garden Inn, Hampton, Homewood Suites and Hilton Honors, its guest loyalty program.