Hilton Grand Vacations Inc. (HGV) vs MGM Resorts International (MGM)

Hilton Grand Vacations Inc. and MGM Resorts International are both Resorts & Casinos companies. MGM Resorts International is the larger, with a market value of $7.4B against $2.8B — 2.6× the size. MGM Resorts International trades at the lower P/E: 17.0× against 19.9×. Hilton Grand Vacations Inc. grew revenue faster over the last twelve months: 5.44% against 3.19%. Hilton Grand Vacations Inc. has the higher net margin (2.86% vs 2.36%) and the lower return on invested capital (3.86% vs 9.23%). Across the 21 metrics below, MGM Resorts International leads on 14 and Hilton Grand Vacations Inc. on 7.

Valuation

Metric HGV MGM Resorts & Casinos median
P/E 19.91 16.95 17.15
P/S 0.53 0.41 0.53
P/B 2.23 2.15 2.09
Price to free cash flow 8.22 3.59 9.94
EV/EBITDA 11.41 4.54 8.87
EV/Sales 1.90 0.64 1.78
Earnings yield 5.02% 5.90% 1.35%
Free cash flow yield 12.17% 27.84% 7.20%

Profitability

Metric HGV MGM Resorts & Casinos median
Gross margin 37.04% 44.16% 50.85%
Operating margin 9.89% 5.73% 10.41%
Net margin 2.86% 2.36% 1.28%
Free cash flow margin 6.48% 11.34% 4.23%
Return on equity 10.42% 11.82% 5.28%
Return on assets 1.26% 1.03% 0.57%
Return on invested capital 3.86% 9.23% 5.61%

Growth

Metric HGV MGM Resorts & Casinos median
Revenue growth (TTM) 5.44% 3.19% 2.76%
EPS growth (last fiscal year) 97.78% (68.33%) 8.54%
Revenue growth, 5-year CAGR 41.36% 27.71% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HGV MGM Resorts & Casinos median
Debt to equity 6.18 1.80 1.94
Current ratio 5.02 1.34 0.91
Net debt to EBITDA 8.30 1.79 3.48

Dividend

Metric HGV MGM Resorts & Casinos median
Dividend yield — — 1.94%
Payout ratio — — 0.37

Size

Metric HGV MGM Resorts & Casinos median
Market cap 2.80b 7.42b 2.44b

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