Reviewing MakeMyTrip (NASDAQ:MMYT) & Hilton Worldwide (NYSE:HLT)

MakeMyTrip (NASDAQ:MMYT) and Hilton Worldwide (NYSE:HLT) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Earnings & Valuation

This table compares MakeMyTrip and Hilton Worldwide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MakeMyTrip	$1.04 billion	4.27	$51.80 million	$0.12	394.95
Hilton Worldwide	$12.04 billion	5.75	$1.46 billion	$6.81	45.13

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

Insider and Institutional Ownership

51.9% of MakeMyTrip shares are held by institutional investors. Comparatively, 95.9% of Hilton Worldwide shares are held by institutional investors. 10.3% of MakeMyTrip shares are held by company insiders. Comparatively, 2.7% of Hilton Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for MakeMyTrip and Hilton Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MakeMyTrip	0	2	5	0	2.71
Hilton Worldwide	0	8	15	2	2.76

MakeMyTrip currently has a consensus target price of $86.75, indicating a potential upside of 83.04%. Hilton Worldwide has a consensus target price of $354.00, indicating a potential upside of 15.19%. Given MakeMyTrip’s higher possible upside, research analysts clearly believe MakeMyTrip is more favorable than Hilton Worldwide.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MakeMyTrip	3.23%	-632.52%	8.31%
Hilton Worldwide	12.69%	-35.24%	11.84%

Volatility and Risk

MakeMyTrip has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Hilton Worldwide has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Hilton Worldwide beats MakeMyTrip on 12 of the 15 factors compared between the two stocks.

About MakeMyTrip

MakeMyTrip Limited, an online travel company, sells travel products and solutions in India, the United States, Singapore, Malaysia, Thailand, the United Arab Emirates, Peru, Colombia, Vietnam, and Indonesia. The company operates through three segments: Air Ticketing, Hotels and Packages, and Bus Ticketing. Its services and products include air tickets; hotels and packages; rail tickets; bus tickets; and car hire, as well as ancillary travel requirements, such as visa processing and facilitating access to travel insurance. The company allows travelers to research, plan, book, and purchase travel services and products through its websites, such as makemytrip.com, goibibo.com, redbus.in, makemytrip.com.sg, and makemytrip.ae; and other technology-enhanced distribution channels, such as call centers, travel stores, and travel agents network, as well as mobile service platform. The company serves leisure and corporate travelers. MakeMyTrip Limited was incorporated in 2000 and is based in Gurugram, India.

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.