Hilton Grand Vacations (NYSE:HGV – Get Free Report) and Starbucks (NASDAQ:SBUX – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.
Earnings and Valuation
This table compares Hilton Grand Vacations and Starbucks”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hilton Grand Vacations | $5.05 billion | 0.53 | $81.00 million | $1.77 | 19.55 |
| Starbucks | $37.18 billion | 2.87 | $1.86 billion | $1.74 | 53.78 |
Profitability
This table compares Hilton Grand Vacations and Starbucks’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hilton Grand Vacations | 2.86% | 20.40% | 2.41% |
| Starbucks | 5.17% | -34.10% | 9.03% |
Institutional & Insider Ownership
97.2% of Hilton Grand Vacations shares are held by institutional investors. Comparatively, 72.3% of Starbucks shares are held by institutional investors. 3.1% of Hilton Grand Vacations shares are held by insiders. Comparatively, 0.0% of Starbucks shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations for Hilton Grand Vacations and Starbucks, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hilton Grand Vacations | 1 | 7 | 4 | 0 | 2.25 |
| Starbucks | 4 | 11 | 18 | 1 | 2.47 |
Hilton Grand Vacations presently has a consensus price target of $54.67, indicating a potential upside of 57.95%. Starbucks has a consensus price target of $110.48, indicating a potential upside of 18.06%. Given Hilton Grand Vacations’ higher probable upside, equities research analysts plainly believe Hilton Grand Vacations is more favorable than Starbucks.
Risk and Volatility
Hilton Grand Vacations has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Starbucks has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.
Summary
Starbucks beats Hilton Grand Vacations on 9 of the 15 factors compared between the two stocks.
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.
About Starbucks
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington.
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