Hilton Worldwide vs Marriott International Which Is More Profitable?

Hilton Worldwide and Marriott International are two of the largest and most well-known hotel chains in the world, competing for market share in the highly competitive hospitality industry. Both companies have a strong presence in popular tourist destinations and major cities worldwide, offering a wide range of accommodations and amenities to attract guests. Investors looking to capitalize on the booming travel industry may consider investing in these stocks to potentially benefit from their growth and profitability.

Hilton Worldwide or Marriott International?

When comparing Hilton Worldwide and Marriott International, 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 Hilton Worldwide and Marriott International.

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. Hilton Worldwide has a dividend yield of 0.24%, while Marriott International has a dividend yield of 0.8%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hilton Worldwide reports a 5-year dividend growth of 0.00% year and a payout ratio of 12.83%. On the other hand, Marriott International reports a 5-year dividend growth of 8.73% year and a payout ratio of 23.77%.

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 Hilton Worldwide P/E ratio at 52.33 and Marriott International's P/E ratio at 29.52. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hilton Worldwide P/B ratio is -17.75 while Marriott International's P/B ratio is -93.39.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hilton Worldwide has seen a 5-year revenue growth of 0.32%, while Marriott International's is 0.33%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hilton Worldwide's ROE at -39.97% and Marriott International's ROE at -210.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $249.07 for Hilton Worldwide and $281.07 for Marriott International. Over the past year, Hilton Worldwide's prices ranged from $161.09 to $252.35, with a yearly change of 56.65%. Marriott International's prices fluctuated between $196.24 and $286.19, with a yearly change of 45.84%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.