Hilton Grand Vacations Inc. (HGV) vs Melco Resorts & Entertainment Limited (MLCO)

Hilton Grand Vacations Inc. and Melco Resorts & Entertainment Limited are both Resorts & Casinos companies. Hilton Grand Vacations Inc. is the larger, with a market value of $2.7B against $1.8B — 1.5× the size. Melco Resorts & Entertainment Limited trades at the lower P/E: 7.9× against 20.1×. Melco Resorts & Entertainment Limited grew revenue faster over the last twelve months: 5.99% against 5.44%. Melco Resorts & Entertainment Limited has the higher net margin (4.50% vs 2.86%) and the higher return on invested capital (8.05% vs 3.86%). Across the 20 metrics below, Melco Resorts & Entertainment Limited leads on 14 and Hilton Grand Vacations Inc. on 6.

Valuation

Metric HGV MLCO Resorts & Casinos median
P/E 20.13 7.88 18.52
P/S 0.54 0.35 0.54
P/B 2.26 n/m 2.13
Price to free cash flow 8.31 1.90 13.62
EV/EBITDA 11.44 12.72 9.18
EV/Sales 1.90 1.55 1.80
Earnings yield 4.97% 12.68% 1.69%
Free cash flow yield 12.03% 52.63% 6.51%

Profitability

Metric HGV MLCO Resorts & Casinos median
Gross margin 37.04% 36.85% 50.85%
Operating margin 9.89% 12.21% 10.41%
Net margin 2.86% 4.50% 1.28%
Free cash flow margin 6.48% 0.00% 4.23%
Return on equity 10.42% (19.59%) 5.28%
Return on assets 1.26% 3.09% 0.57%
Return on invested capital 3.86% 8.05% 5.61%

Growth

Metric HGV MLCO Resorts & Casinos median
Revenue growth (TTM) 5.44% 5.99% 2.76%
EPS growth (last fiscal year) 97.78% 360.00% —
Revenue growth, 5-year CAGR 41.36% 24.47% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HGV MLCO Resorts & Casinos median
Debt to equity 6.18 (5.43) 1.94
Current ratio 5.02 1.01 0.91
Net debt to EBITDA 8.30 5.04 3.08

Dividend

Metric HGV MLCO Resorts & Casinos median
Dividend yield — — 1.27%
Payout ratio 0.00 0.00 0.00

Size

Metric HGV MLCO Resorts & Casinos median
Market cap 2.73b 1.80b 2.43b

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