Financial Analysis: Hilton Grand Vacations (NYSE:HGV) & Wynn Macau (OTCMKTS:WYNMY)

Wynn Macau (OTCMKTS:WYNMY) and Hilton Grand Vacations (NYSE:HGV) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Wynn Macau and Hilton Grand Vacations, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Macau	0	0	0	0	0.00
Hilton Grand Vacations	1	2	4	0	2.43

Hilton Grand Vacations has a consensus price target of $43.86, indicating a potential upside of 5.38%. Given Hilton Grand Vacations’ stronger consensus rating and higher possible upside, analysts clearly believe Hilton Grand Vacations is more favorable than Wynn Macau.

Profitability

This table compares Wynn Macau and Hilton Grand Vacations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wynn Macau	N/A	N/A	N/A
Hilton Grand Vacations	2.01%	16.44%	3.19%

Volatility & Risk

Wynn Macau has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Hilton Grand Vacations has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares Wynn Macau and Hilton Grand Vacations”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Macau	$3.10 billion	1.30	$149.62 million	N/A	N/A
Hilton Grand Vacations	$3.98 billion	1.03	$313.00 million	$0.88	47.30

Hilton Grand Vacations has higher revenue and earnings than Wynn Macau.

Institutional and Insider Ownership

97.2% of Hilton Grand Vacations shares are owned by institutional investors. 2.3% of Hilton Grand Vacations shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Hilton Grand Vacations beats Wynn Macau on 11 of the 12 factors compared between the two stocks.

About Wynn Macau

Wynn Macau, Limited, through its subsidiaries, engages in the development, ownership, and operation of integrated destination casino resorts in Macau. The company's Wynn Palace resort features approximately 468,000 square feet of casino space providing 24-hour gaming and various games comprising private gaming salons and sky casinos; a luxury hotel with guest rooms, suites, and villas; and food and beverage outlets. Its Wynn Palace resort also consists of approximately 107,000 square feet of retail shopping; 37,000 square feet of meeting and convention space; recreation and leisure facilities consisting of a cable car ride, health club, spa, salon, and pool; and public entertainment attractions, including a lake, animated floral art displays, and fine art displays. In addition, the company's Wynn Macau resort features approximately 294,000 square feet of casino space offering 24-hour gaming and various games, including private gaming salons, sky casinos, and a poker pit; hotel towers with rooms and suites; food and beverage outlets; and recreation and leisure facilities, such as health clubs and spas, a salon, and a pool. Further, its Wynn Macau resort includes approximately 64,300 square feet of brand-name retail shopping and 31,000 square feet of meeting and convention space. The company was incorporated in 2009 and is headquartered in Macau. Wynn Macau, Limited operates as a subsidiary of WM Cayman Holdings Limited I.

About Hilton Grand Vacations

Hilton Grand Vacations Inc., a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans. Resort Operations and Club Management segment manages and operates the clubs which offers exchange, leisure travel, and reservation services, as well as engages in the rental of inventory made available due to ownership exchanges through its club programs, and provides ancillary services including food and beverage, retail and spa at timeshare properties. Hilton Grand Vacations Inc. was founded in 1992 and is headquartered in Orlando, Florida.