MTY Food Group (OTCMKTS:MTYFF) versus Hilton Worldwide (NYSE:HLT) Critical Analysis

Hilton Worldwide (NYSE:HLT) and MTY Food Group (OTCMKTS:MTYFF) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Hilton Worldwide and MTY Food Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0	8	14	0	2.64
MTY Food Group	0	3	0	0	2.00

Hilton Worldwide currently has a consensus target price of $353.05, indicating a potential upside of 13.50%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe Hilton Worldwide is more favorable than MTY Food Group.

Valuation and Earnings

This table compares Hilton Worldwide and MTY Food Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Worldwide	$12.04 billion	5.81	$1.46 billion	$6.81	45.67
MTY Food Group	N/A	N/A	N/A	$1.41	17.80

Hilton Worldwide has higher revenue and earnings than MTY Food Group. MTY Food Group is trading at a lower price-to-earnings ratio than Hilton Worldwide, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

95.9% of Hilton Worldwide shares are held by institutional investors. Comparatively, 25.1% of MTY Food Group shares are held by institutional investors. 2.7% of Hilton Worldwide shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. MTY Food Group pays an annual dividend of $0.33 per share and has a dividend yield of 1.3%. Hilton Worldwide pays out 8.8% of its earnings in the form of a dividend. MTY Food Group pays out 23.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Hilton Worldwide and MTY Food Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	12.69%	-35.24%	11.84%
MTY Food Group	N/A	N/A	N/A

Summary

Hilton Worldwide beats MTY Food Group on 11 of the 13 factors compared between the two stocks.

About Hilton Worldwide

Hilton Worldwide Holdings Inc., a hospitality company, engages in managing, franchising, owning, and leasing hotels and resorts. It operates through two segments, Management and Franchise, and Ownership. The company engages in the hotel management and licensing of its brands. It operates luxury hotels under the Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts, and Conrad Hotels & Resorts brand; lifestyle hotels under the Canopy by Hilton, Curio Collection by Hilton, Tapestry Collection by Hilton, Tempo by Hilton, and Motto by Hilton brand; full service hotels under the Signia by Hilton, Hilton Hotels & Resorts, and DoubleTree by Hilton brand; service hotels under the Hilton Garden Inn, Hampton by Hilton, and Tru by Hilton brand; all-suite hotels under the Embassy Suites by Hilton, Homewood Suites by Hilton, and Home2 Suites by Hilton brand; and economy hotel under the Spark by Hilton brand, as well as Hilton Grand Vacations. The company operates in North America, South America, and Central America, including various Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. The company was founded in 1919 and is headquartered in McLean, Virginia.

About MTY Food Group

MTY Food Group Inc. operates and franchises quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and internationally. It also sells retail products under a multitude of banners. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada.