Hilton Worldwide Holdings Inc. (HLT) vs Marriott International, Inc. (MAR)

Hilton Worldwide Holdings Inc. and Marriott International, Inc. are both Lodging companies. Marriott International, Inc. is the larger, with a market value of $91.3B against $70.3B — 1.3× the size. Marriott International, Inc. trades at the lower P/E: 36.4× against 45.7×. Hilton Worldwide Holdings Inc. grew revenue faster over the last twelve months: 8.74% against 4.72%. Hilton Worldwide Holdings Inc. has the higher net margin (12.7% vs 9.62%) and the higher return on invested capital (30.3% vs 22.3%). Both pay a dividend; Marriott International, Inc. yields more (0.76% vs 0.33%). Across the 21 metrics below, Marriott International, Inc. leads on 11 and Hilton Worldwide Holdings Inc. on 10.

Valuation

Metric HLT MAR Lodging median
P/E 45.70 36.37 26.75
P/S 5.71 3.45 2.70
P/B n/m n/m 6.31
Price to free cash flow 38.17 33.21 14.61
EV/EBITDA 26.21 22.07 13.70
EV/Sales 6.69 4.06 3.07
Earnings yield 2.19% 2.75% 2.75%
Free cash flow yield 2.62% 3.01% 5.61%

Profitability

Metric HLT MAR Lodging median
Gross margin 91.43% 20.08% 35.16%
Operating margin 23.35% 15.80% 14.37%
Net margin 12.69% 9.62% 9.62%
Free cash flow margin 15.53% 10.72% 10.30%
Return on equity (29.23%) (69.09%) 1.31%
Return on assets 9.65% 9.33% 0.53%
Return on invested capital 30.34% 22.27% 3.70%

Growth

Metric HLT MAR Lodging median
Revenue growth (TTM) 8.74% 4.72% 5.85%
EPS growth (last fiscal year) (0.33%) 14.17% —
Revenue growth, 5-year CAGR 22.82% 19.89% 16.16%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HLT MAR Lodging median
Debt to equity (2.13) (3.74) 0.00
Current ratio 0.65 0.53 0.99
Net debt to EBITDA 3.87 3.34 3.33

Dividend

Metric HLT MAR Lodging median
Dividend yield 0.33% 0.76% 1.29%
Payout ratio 0.13 0.18 0.02

Size

Metric HLT MAR Lodging median
Market cap 70.25b 91.33b 4.54b

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