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 $3.3B against $1.7B — 1.9× the size. Melco Resorts & Entertainment Limited trades at the lower P/E: 7.6× against 8.1×. Hilton Grand Vacations Inc. grew revenue faster over the last twelve months: 18.8% against 5.99%. Hilton Grand Vacations Inc. has the higher net margin (7.02% vs 4.50%) and the lower return on invested capital (6.38% vs 8.05%). Across the 20 metrics below, Hilton Grand Vacations Inc. leads on 10 and Melco Resorts & Entertainment Limited on 10.

Valuation

Metric HGV MLCO Resorts & Casinos median
P/E 8.14 7.60 16.84
P/S 0.57 0.34 0.57
P/B 2.28 n/m 2.02
Price to free cash flow 8.43 1.83 10.86
EV/EBITDA 8.48 12.62 8.92
EV/Sales 1.79 1.54 1.79
Earnings yield 12.29% 13.16% 2.61%
Free cash flow yield 11.86% 54.59% 7.35%

Profitability

Metric HGV MLCO Resorts & Casinos median
Gross margin 39.57% 36.85% 47.52%
Operating margin 15.04% 12.21% 12.21%
Net margin 7.02% 4.50% 3.87%
Free cash flow margin 6.70% 0.00% 5.15%
Return on equity 27.71% (19.59%) 19.64%
Return on assets 3.55% 3.09% 1.70%
Return on invested capital 6.38% 8.05% 6.38%

Growth

Metric HGV MLCO Resorts & Casinos median
Revenue growth (TTM) 18.79% 5.99% 3.08%
EPS growth (last fiscal year) 97.78% 360.00% 3.45%
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 5.29 (5.43) 0.06
Current ratio 5.15 1.01 0.91
Net debt to EBITDA 8.30 5.04 4.00

Dividend

Metric HGV MLCO Resorts & Casinos median
Dividend yield — — 1.98%
Payout ratio — — 0.49

Size

Metric HGV MLCO Resorts & Casinos median
Market cap 3.31b 1.73b 3.32b

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