Hilton Grand Vacations Inc. (HGV) vs Marriott Vacations Worldwide Corporation (VAC)

Hilton Grand Vacations Inc. and Marriott Vacations Worldwide Corporation are both Resorts & Casinos companies. Marriott Vacations Worldwide Corporation is the larger, with a market value of $3.5B against $2.7B — 1.3× the size. Marriott Vacations Worldwide Corporation has negative trailing earnings, so its P/E is not meaningful; Hilton Grand Vacations Inc. trades at 20.1×. Hilton Grand Vacations Inc. grew revenue faster over the last twelve months: 5.44% against 1.67%. Hilton Grand Vacations Inc. has the higher net margin (2.86% vs −6.47%) and the higher return on invested capital (3.86% vs −1.51%). Across the 19 metrics below, Hilton Grand Vacations Inc. leads on 14 and Marriott Vacations Worldwide Corporation on 5.

Valuation

Metric HGV VAC Resorts & Casinos median
P/E 20.13 n/m 18.52
P/S 0.54 0.69 0.54
P/B 2.26 1.74 2.13
Price to free cash flow 8.31 35.08 13.62
EV/EBITDA 11.44 n/m 9.18
EV/Sales 1.90 1.65 1.80
Earnings yield 4.97% (9.39%) 1.69%
Free cash flow yield 12.03% 2.85% 6.51%

Profitability

Metric HGV VAC Resorts & Casinos median
Gross margin 37.04% 90.72% 50.85%
Operating margin 9.89% (3.27%) 10.41%
Net margin 2.86% (6.47%) 1.28%
Free cash flow margin 6.48% 1.98% 4.23%
Return on equity 10.42% (14.71%) 5.28%
Return on assets 1.26% (3.45%) 0.57%
Return on invested capital 3.86% (1.51%) 5.61%

Growth

Metric HGV VAC Resorts & Casinos median
Revenue growth (TTM) 5.44% 1.67% 2.76%
EPS growth (last fiscal year) 97.78% (257.58%) —
Revenue growth, 5-year CAGR 41.36% 11.76% 24.21%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HGV VAC Resorts & Casinos median
Debt to equity 6.18 2.65 1.94
Current ratio 5.02 3.56 0.91
Net debt to EBITDA 8.30 (1,236.75) 3.08

Dividend

Metric HGV VAC Resorts & Casinos median
Dividend yield — 2.28% 1.27%
Payout ratio 0.00 0.32 0.00

Size

Metric HGV VAC Resorts & Casinos median
Market cap 2.73b 3.47b 2.43b

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