Booking vs Hyatt Hotels Which Offers More Value?

Booking Holdings (BKNG) and Hyatt Hotels Corporation (H) are two major players in the hospitality industry, but they cater to different segments of the market. Booking Holdings operates an online travel platform that offers booking services for accommodations, flights, and rental cars, while Hyatt Hotels owns and operates a portfolio of luxury hotels and resorts worldwide. Investors looking to bet on the recovery of the travel industry may find Booking Holdings to be a better choice, while those seeking exposure to the hotel sector may prefer Hyatt Hotels.

Booking or Hyatt Hotels?

When comparing Booking and Hyatt Hotels, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Booking and Hyatt Hotels.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Booking has a dividend yield of 0.7%, while Hyatt Hotels has a dividend yield of 0.38%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Booking reports a 5-year dividend growth of 0.00% year and a payout ratio of 17.57%. On the other hand, Hyatt Hotels reports a 5-year dividend growth of 0.00% year and a payout ratio of 5.52%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Booking P/E ratio at 32.97 and Hyatt Hotels's P/E ratio at 11.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Booking P/B ratio is -45.45 while Hyatt Hotels's P/B ratio is 4.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Booking has seen a 5-year revenue growth of 0.93%, while Hyatt Hotels's is 0.63%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Booking's ROE at -136.80% and Hyatt Hotels's ROE at 37.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $4951.94 for Booking and $157.50 for Hyatt Hotels. Over the past year, Booking's prices ranged from $3079.50 to $5069.44, with a yearly change of 64.62%. Hyatt Hotels's prices fluctuated between $112.04 and $162.24, with a yearly change of 44.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.