Head-To-Head Survey: Hilton Grand Vacations (NYSE:HGV) vs. Wynn Resorts (NASDAQ:WYNN)

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

Institutional & Insider Ownership

88.6% of Wynn Resorts shares are held by institutional investors. Comparatively, 97.2% of Hilton Grand Vacations shares are held by institutional investors. 0.9% of Wynn Resorts shares are held by company insiders. Comparatively, 3.1% of Hilton Grand Vacations shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wynn Resorts	6.05%	-46.52%	3.60%
Hilton Grand Vacations	2.86%	20.40%	2.41%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Wynn Resorts and Hilton Grand Vacations, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wynn Resorts	0	2	17	1	2.95
Hilton Grand Vacations	0	8	4	0	2.33

Wynn Resorts presently has a consensus price target of $133.35, suggesting a potential upside of 51.78%. Hilton Grand Vacations has a consensus price target of $54.67, suggesting a potential upside of 42.94%. Given Wynn Resorts’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Wynn Resorts is more favorable than Hilton Grand Vacations.

Valuation and Earnings

This table compares Wynn Resorts and Hilton Grand Vacations”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wynn Resorts	$7.14 billion	1.27	$327.33 million	$4.03	21.80
Hilton Grand Vacations	$5.05 billion	0.59	$81.00 million	$1.77	21.61

Wynn Resorts has higher revenue and earnings than Hilton Grand Vacations. Hilton Grand Vacations is trading at a lower price-to-earnings ratio than Wynn Resorts, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Wynn Resorts has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Hilton Grand Vacations has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Summary

Wynn Resorts beats Hilton Grand Vacations on 11 of the 15 factors compared between the two stocks.

About Wynn Resorts

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.

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.