Hyatt Hotels (H) and Belmond (BEL) Critical Survey

Hyatt Hotels (NYSE: H) and Belmond (NYSE:BEL) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, dividends and risk.

Profitability

This table compares Hyatt Hotels and Belmond’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hyatt Hotels 12.81% 4.39% 2.13%
Belmond -7.52% 1.50% 0.63%

Dividends

Hyatt Hotels pays an annual dividend of $0.60 per share and has a dividend yield of 0.8%. Belmond does not pay a dividend. Hyatt Hotels pays out 33.7% of its earnings in the form of a dividend.

Risk & Volatility

Hyatt Hotels has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Belmond has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

38.3% of Hyatt Hotels shares are held by institutional investors. Comparatively, 82.4% of Belmond shares are held by institutional investors. 18.4% of Hyatt Hotels shares are held by company insiders. Comparatively, 87.6% of Belmond shares are held by company 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 ratings and price targets for Hyatt Hotels and Belmond, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hyatt Hotels 0 6 9 0 2.60
Belmond 0 2 1 0 2.33

Hyatt Hotels currently has a consensus price target of $82.15, indicating a potential upside of 4.84%. Belmond has a consensus price target of $13.33, indicating a potential upside of 17.47%. Given Belmond’s higher possible upside, analysts clearly believe Belmond is more favorable than Hyatt Hotels.

Valuation & Earnings

This table compares Hyatt Hotels and Belmond’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hyatt Hotels $4.69 billion 1.96 $249.00 million $1.78 44.02
Belmond $561.00 million 2.08 -$45.03 million $0.12 94.58

Hyatt Hotels has higher revenue and earnings than Belmond. Hyatt Hotels is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.

Summary

Hyatt Hotels beats Belmond on 10 of the 16 factors compared between the two stocks.

Hyatt Hotels 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 March 31, 2018, its portfolio consisted of approximately 700 properties in 50 countries. 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.

Belmond Company Profile

Belmond Ltd. engages in the hotel and travel businesses. As of December 31, 2017, the company owned, invested in, or managed 36 deluxe hotels and resort properties in the United States, Mexico, The Caribbean, Europe, Southern Africa, South America, and Southeast Asia; 1 stand-alone restaurant in New York; 7 tourist trains in Europe, Southeast Asia, and Peru; 1 river cruise in Myanmar; and 1 canal boat business in France. Its portfolio of hotels includes 3,203 individual guest rooms and multiple-room suites. The company was formerly known as Orient-Express Hotels Ltd. and changed its name to Belmond Ltd. in June 2014. Belmond Ltd. was founded in 1971 and is based in Hamilton, Bermuda.

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