Hilton Hotels (NYSE:HLT) and Century Casinos (NASDAQ:CNTY) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, earnings, profitability, risk, analyst recommendations and dividends.
Insider and Institutional Ownership
96.5% of Hilton Hotels shares are held by institutional investors. Comparatively, 79.0% of Century Casinos shares are held by institutional investors. 1.7% of Hilton Hotels shares are held by insiders. Comparatively, 12.7% of Century Casinos shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This is a summary of current ratings for Hilton Hotels and Century Casinos, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hilton Hotels currently has a consensus target price of $84.18, suggesting a potential upside of 17.10%. Century Casinos has a consensus target price of $13.00, suggesting a potential upside of 65.18%. Given Century Casinos’ stronger consensus rating and higher possible upside, analysts plainly believe Century Casinos is more favorable than Hilton Hotels.
This table compares Hilton Hotels and Century Casinos’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Hilton Hotels has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Century Casinos has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.
Hilton Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Century Casinos does not pay a dividend. Hilton Hotels pays out 30.0% of its earnings in the form of a dividend. Hilton Hotels has increased its dividend for 3 consecutive years.
Earnings & Valuation
This table compares Hilton Hotels and Century Casinos’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hilton Hotels||$9.14 billion||2.33||$1.26 billion||$2.00||35.95|
|Century Casinos||$154.07 million||1.50||$6.25 million||$0.45||17.49|
Hilton Hotels has higher revenue and earnings than Century Casinos. Century Casinos is trading at a lower price-to-earnings ratio than Hilton Hotels, indicating that it is currently the more affordable of the two stocks.
Hilton Hotels beats Century Casinos on 14 of the 18 factors compared between the two stocks.
About Hilton Hotels
Hilton Worldwide Holdings Inc., a hospitality company, owns, leases, manages, develops, and franchises 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 to franchisees. It operates hotels under the Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy by Hilton, Hilton Hotels & Resorts, Curio – A Collection by Hilton, DoubleTree by Hilton, Tapestry Collection by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, Tru by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Tapestry Collection by Hilton, and Hilton Grand Vacations brands. The company operates in North America, South America, and Central America, including all Caribbean nations; Europe, the Middle East, and Africa; and the Asia Pacific. As of December 20, 2018, it had approximately 5,500 properties with approximately 895,000 rooms in 109 countries and territories. Hilton Worldwide Holdings Inc. was founded in 1919 and is headquartered in McLean, Virginia.
About Century Casinos
Century Casinos, Inc. operates as a casino entertainment company worldwide. The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities. It owns and operates casinos in North America and Poland; a racetrack and entertainment center in Canada; and pari-mutuel off-track betting network in southern Alberta, Canada. The company also manages cruise ship-based casinos; and provides gaming services in Argentina. As of March 9, 2018, it operated 14 ship-based casinos. The company was founded in 1992 and is based in Colorado Springs, Colorado.
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