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 $4.0B against $2.8B — 1.4× the size. Marriott Vacations Worldwide Corporation has negative trailing earnings, so its P/E is not meaningful; Hilton Grand Vacations Inc. trades at 21.5×. 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 21.51 n/m 17.17
P/S 0.58 0.78 0.58
P/B 2.41 1.95 2.18
Price to free cash flow 8.88 39.36 9.54
EV/EBITDA 11.66 n/m 8.81
EV/Sales 1.94 1.73 1.73
Earnings yield 4.65% (8.36%) 2.55%
Free cash flow yield 11.26% 2.54% 7.85%

Profitability

Metric HGV VAC Resorts & Casinos median
Gross margin 37.04% 90.72% 49.00%
Operating margin 9.89% (3.27%) 10.92%
Net margin 2.86% (6.47%) 2.36%
Free cash flow margin 6.48% 1.98% 6.48%
Return on equity 10.42% (14.71%) 0.14%
Return on assets 1.26% (3.45%) 1.03%
Return on invested capital 3.86% (1.51%) 7.36%

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%) 3.45%
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 2.08
Current ratio 5.02 3.56 0.91
Net debt to EBITDA 8.30 (1,236.75) 4.00

Dividend

Metric HGV VAC Resorts & Casinos median
Dividend yield — 2.77% 1.95%
Payout ratio — — 0.37

Size

Metric HGV VAC Resorts & Casinos median
Market cap 2.78b 3.98b 2.78b

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