Comparing Hyatt (H) & The Competition

Hyatt (NYSE: H) is one of 30 publicly-traded companies in the “Hotels & motels” industry, but how does it contrast to its competitors? We will compare Hyatt to similar businesses based on the strength of its analyst recommendations, risk, valuation, profitability, institutional ownership, dividends and earnings.

Profitability

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This table compares Hyatt and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyatt 5.31% 6.02% 2.85%
Hyatt Competitors 10.97% 12.75% 4.81%

Dividends

Hyatt pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Hyatt pays out 33.7% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hyatt and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyatt 0 6 9 0 2.60
Hyatt Competitors 306 1436 2177 73 2.51

Hyatt currently has a consensus price target of $80.08, indicating a potential upside of 6.91%. As a group, “Hotels & motels” companies have a potential upside of 5.93%. Given Hyatt’s stronger consensus rating and higher probable upside, equities analysts plainly believe Hyatt is more favorable than its competitors.

Valuation & Earnings

This table compares Hyatt and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Hyatt $4.69 billion $249.00 million 42.08
Hyatt Competitors $3.57 billion $470.05 million 161.03

Hyatt has higher revenue, but lower earnings than its competitors. Hyatt is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

39.2% of Hyatt shares are owned by institutional investors. Comparatively, 69.3% of shares of all “Hotels & motels” companies are owned by institutional investors. 27.5% of Hyatt shares are owned by company insiders. Comparatively, 19.2% of shares of all “Hotels & motels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Hyatt has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Hyatt’s competitors have a beta of 1.15, meaning that their average stock price is 15% more volatile than the S&P 500.

Summary

Hyatt competitors beat Hyatt on 8 of the 15 factors compared.

Hyatt Company Profile

Hyatt Hotels Corporation, a hospitality company, develops, owns, operates, manages, franchises, licenses, or provides services to hotels, resorts, residential, and other properties. It operates in four segments: Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, and EAME/SW Asia Management and Franchising. The company operates its properties under the Hyatt, Park Hyatt, Miraval, Grand Hyatt, Hyatt Regency, Andaz, Hyatt Centric, The Unbound Collection by Hyatt, Hyatt Place, Hyatt House, Hyatt Ziva, Hyatt Zilara, echale, Hyatt Residence Club, Hyatt Residences, World of Hyatt, and Hyatt Resorts brands and trademarks. As of December 31, 2017, its portfolio consisted of 719 full and select service hotels with 182,913 rooms. It primarily serves corporations; national, state, and regional associations; specialty market accounts, including social, government, military, educational, religious, and fraternal accounts; travel organizations; and a group of individual consumers. Hyatt Hotels Corporation has a strategic development agreement with Tianfu Minyoun Hospitality for the expansion of Hyatt Place and Hyatt House hotels in China. The company was formerly known as Global Hyatt Corporation and changed its name to Hyatt Hotels Corporation in June 2009. Hyatt Hotels Corporation was founded in 1957 and is headquartered in Chicago, Illinois.

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