Contrasting Hilton Worldwide (NYSE:HLT) and Jollibee Foods (OTCMKTS:JBFCY)

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

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Jollibee Foods and Hilton Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jollibee Foods	$5.31 billion	0.48	$189.17 million	$0.58	15.65
Hilton Worldwide	$12.04 billion	6.54	$1.46 billion	$6.81	51.38

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Jollibee Foods and Hilton Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jollibee Foods	0	1	0	0	2.00
Hilton Worldwide	0	8	16	2	2.77

Hilton Worldwide has a consensus target price of $356.65, suggesting a potential upside of 1.93%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, analysts clearly believe Hilton Worldwide is more favorable than Jollibee Foods.

Dividends

Jollibee Foods pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Jollibee Foods pays out 15.5% of its earnings in the form of a dividend. Hilton Worldwide pays out 8.8% 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 Jollibee Foods and Hilton Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jollibee Foods	3.16%	14.04%	3.55%
Hilton Worldwide	12.69%	-35.24%	11.84%

Summary

Hilton Worldwide beats Jollibee Foods on 14 of the 16 factors compared between the two stocks.

About Jollibee Foods

Jollibee Foods Corporation develops, operates, and franchises quick service restaurants. The company operates quick-service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, PHO24, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Yoshinoya, Milksha, and Panda Express names in the Philippines, the United States, Canada, the People's Republic of China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Australia, and India. It also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources, and logistics services. The company was incorporated in 1978 and is based in Pasig, the Philippines.

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.