Hilton Worldwide (NYSE: HLT) and Las Vegas Sands (NYSE:LVS) are both large-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

Hilton Worldwide has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Las Vegas Sands has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500.

Valuation & Earnings

This table compares Hilton Worldwide and Las Vegas Sands’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilton Worldwide $9.14 billion 2.73 $1.26 billion $2.00 41.58
Las Vegas Sands $12.88 billion 4.92 $2.81 billion $3.04 26.41

Las Vegas Sands has higher revenue and earnings than Hilton Worldwide. Las Vegas Sands is trading at a lower price-to-earnings ratio than Hilton Worldwide, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.6% of Hilton Worldwide shares are owned by institutional investors. Comparatively, 37.5% of Las Vegas Sands shares are owned by institutional investors. 1.7% of Hilton Worldwide shares are owned by insiders. Comparatively, 10.2% of Las Vegas Sands shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Hilton Worldwide and Las Vegas Sands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hilton Worldwide 14.87% 41.44% 4.93%
Las Vegas Sands 28.32% 36.43% 13.17%

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.7%. Las Vegas Sands pays an annual dividend of $3.00 per share and has a dividend yield of 3.7%. Hilton Worldwide pays out 30.0% of its earnings in the form of a dividend. Las Vegas Sands pays out 98.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hilton Worldwide has raised its dividend for 2 consecutive years and Las Vegas Sands has raised its dividend for 5 consecutive years. Las Vegas Sands is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Hilton Worldwide and Las Vegas Sands, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilton Worldwide 0 8 7 1 2.56
Las Vegas Sands 0 8 7 0 2.47

Hilton Worldwide presently has a consensus price target of $84.69, indicating a potential upside of 1.85%. Las Vegas Sands has a consensus price target of $74.25, indicating a potential downside of 7.51%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hilton Worldwide is more favorable than Las Vegas Sands.

Summary

Las Vegas Sands beats Hilton Worldwide on 10 of the 17 factors compared between the two stocks.

Hilton Worldwide 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 February 28, 2018, it had approximately 5,200 properties with 856,000 rooms in 105 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.

Las Vegas Sands Company Profile

Las Vegas Sands Corp., together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. It owns and operates The Venetian Macao Resort Hotel, the Sands Cotai Central, The Parisian Macao, The Plaza Macao and Four Seasons Hotel Macao, Cotai Strip, and the Sands Macao in Macao, the People's Republic of China; and iconic Marina Bay Sands in Singapore. The company also owns and operates The Venetian Resort Hotel Casino and The Palazzo Resort Hotel Casino on the Las Vegas Strip; the Sands Expo and Convention Center in Las Vegas, Nevada; and the Sands Casino Resort Bethlehem in Bethlehem, Pennsylvania. Its integrated resorts include accommodations, gaming, entertainment and retail, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Las Vegas Sands Corp. was founded in 1988 and is based in Las Vegas, Nevada.

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