Hilton Worldwide Holdings Inc. (HLT) vs Intercontinental Hotels Group (IHG)

Hilton Worldwide Holdings Inc. and Intercontinental Hotels Group are both Lodging companies. Hilton Worldwide Holdings Inc. is the larger, with a market value of $70.3B against $23.1B — 3.0× the size. Intercontinental Hotels Group trades at the lower P/E: 26.8× against 45.7×. Intercontinental Hotels Group grew revenue faster over the last twelve months: 29.1% against 8.74%. Intercontinental Hotels Group has the higher net margin (13.4% vs 12.7%) and the lower return on invested capital (0.00% vs 30.3%). Both pay a dividend; Intercontinental Hotels Group yields more (1.68% vs 0.33%). Across the 19 metrics below, Intercontinental Hotels Group leads on 11 and Hilton Worldwide Holdings Inc. on 8.

Valuation

Metric HLT IHG Lodging median
P/E 45.70 26.75 26.75
P/S 5.71 n/m 2.70
P/B n/m n/m 6.31
Price to free cash flow 38.17 n/m 14.61
EV/EBITDA 26.21 1.86 13.70
EV/Sales 6.69 0.42 3.07
Earnings yield 2.19% 3.74% 2.75%
Free cash flow yield 2.62% 0.00% 5.61%

Profitability

Metric HLT IHG Lodging median
Gross margin 91.43% 20.69% 35.16%
Operating margin 23.35% 0.00% 14.37%
Net margin 12.69% 13.44% 9.62%
Free cash flow margin 15.53% 0.00% 10.30%
Return on equity (29.23%) 0.00% 1.31%
Return on assets 9.65% 0.00% 0.53%
Return on invested capital 30.34% 0.00% 3.70%

Growth

Metric HLT IHG Lodging median
Revenue growth (TTM) 8.74% 29.07% 5.85%
EPS growth (last fiscal year) (0.33%) 26.49% —
Revenue growth, 5-year CAGR 22.82% 16.73% 16.16%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HLT IHG Lodging median
Debt to equity (2.13) (1.39) 0.00
Current ratio 0.65 0.66 0.99
Net debt to EBITDA 3.87 2.29 3.33

Dividend

Metric HLT IHG Lodging median
Dividend yield 0.33% 1.68% 1.29%
Payout ratio 0.13 0.39 0.02

Size

Metric HLT IHG Lodging median
Market cap 70.25b 23.08b 4.54b

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