Hilton Grand Vacations (NYSE:HGV) versus Canterbury Park (NASDAQ:CPHC) Critical Review

Canterbury Park (NASDAQ:CPHC) and Hilton Grand Vacations (NYSE:HGV) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Volatility & Risk

Canterbury Park has a beta of -0.39, indicating that its stock price is 139% less volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Canterbury Park	0.20%	0.14%	0.10%
Hilton Grand Vacations	2.86%	20.40%	2.41%

Institutional and Insider Ownership

76.4% of Canterbury Park shares are held by institutional investors. Comparatively, 97.2% of Hilton Grand Vacations shares are held by institutional investors. 23.7% of Canterbury Park shares are held by insiders. Comparatively, 3.1% of Hilton Grand Vacations shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Canterbury Park and Hilton Grand Vacations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canterbury Park	1	0	0	0	1.00
Hilton Grand Vacations	0	8	4	0	2.33

Hilton Grand Vacations has a consensus price target of $54.67, indicating a potential upside of 53.56%. Given Hilton Grand Vacations’ stronger consensus rating and higher possible upside, analysts clearly believe Hilton Grand Vacations is more favorable than Canterbury Park.

Valuation & Earnings

This table compares Canterbury Park and Hilton Grand Vacations”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canterbury Park	$59.57 million	1.36	-$530,000.00	$0.02	780.00
Hilton Grand Vacations	$5.05 billion	0.55	$81.00 million	$1.77	20.11

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

Summary

Hilton Grand Vacations beats Canterbury Park on 11 of the 14 factors compared between the two stocks.

About Canterbury Park

Canterbury Park Holding Corp. engages in hosting and managing pari mutuel wagering activities. It operates through the following business segments: Horse Racing, Card Casino, Food & Beverage and Development. The Horse Racing segment includes simulcast and live horse racing operations. The Card Casino segment holds unbanked card games, poker and table games. The Food and Beverage segment consists of concession stands, restaurant and buffet, bars, and other food venues. The Development segment owns land for racetrack operations. Canterbury Park Holding was founded by Curtis A. Samson, Randall D. Sampson, and Dale H. Schenian on March 24, 1994 and is headquartered in Shakopee, MN.

About Hilton Grand Vacations

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans. Resort Operations and Club Management segment manages and operates the clubs which offers exchange, leisure travel, and reservation services, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs, and provides ancillary services including food and beverage, retail and spa at timeshare properties. Hilton Grand Vacations Inc. was founded in 1992 and is headquartered in Orlando, Florida.