Critical Analysis: Hilton Worldwide (NYSE:HLT) versus LuxUrban Hotels (NASDAQ:LUXHP)

Hilton Worldwide (NYSE:HLT) and LuxUrban Hotels (NASDAQ:LUXHP) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Hilton Worldwide and LuxUrban Hotels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0	9	10	0	2.53
LuxUrban Hotels	0	0	0	0	N/A

Hilton Worldwide currently has a consensus target price of $216.05, suggesting a potential downside of 9.53%. Given Hilton Worldwide’s higher probable upside, research analysts plainly believe Hilton Worldwide is more favorable than LuxUrban Hotels.

Dividends

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. LuxUrban Hotels pays an annual dividend of $3.25 per share and has a dividend yield of 23.6%. Hilton Worldwide pays out 13.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

95.9% of Hilton Worldwide shares are held by institutional investors. 2.5% of Hilton Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hilton Worldwide and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hilton Worldwide	11.20%	-69.65%	11.20%
LuxUrban Hotels	N/A	N/A	N/A

Earnings and Valuation

This table compares Hilton Worldwide and LuxUrban Hotels”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Worldwide	$10.81 billion	5.53	$1.14 billion	$4.60	51.92
LuxUrban Hotels	$90.87 million	N/A	N/A	N/A	N/A

Hilton Worldwide has higher revenue and earnings than LuxUrban Hotels.

Summary

Hilton Worldwide beats LuxUrban Hotels on 7 of the 10 factors compared between the two stocks.

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.

About LuxUrban Hotels

LuxUrban Hotels Inc. engages in the leasing of entire existing hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. LuxUrban Hotels Inc. was incorporated in 2017 and is headquartered in Miami, Florida.