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HGV or H: Which Is the Better Value Stock Right Now?
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Investors with an interest in Hotels and Motels stocks have likely encountered both Hilton Grand Vacations (HGV - Free Report) and Hyatt Hotels (H - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Hilton Grand Vacations is sporting a Zacks Rank of #2 (Buy), while Hyatt Hotels has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HGV likely has seen a stronger improvement to its earnings outlook than H has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HGV currently has a forward P/E ratio of 10.82, while H has a forward P/E of 42.48. We also note that HGV has a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. H currently has a PEG ratio of 19.66.
Another notable valuation metric for HGV is its P/B ratio of 2.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, H has a P/B of 3.68.
These metrics, and several others, help HGV earn a Value grade of A, while H has been given a Value grade of C.
HGV sticks out from H in both our Zacks Rank and Style Scores models, so value investors will likely feel that HGV is the better option right now.
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HGV or H: Which Is the Better Value Stock Right Now?
Investors with an interest in Hotels and Motels stocks have likely encountered both Hilton Grand Vacations (HGV - Free Report) and Hyatt Hotels (H - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Hilton Grand Vacations is sporting a Zacks Rank of #2 (Buy), while Hyatt Hotels has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HGV likely has seen a stronger improvement to its earnings outlook than H has recently. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HGV currently has a forward P/E ratio of 10.82, while H has a forward P/E of 42.48. We also note that HGV has a PEG ratio of 1.25. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. H currently has a PEG ratio of 19.66.
Another notable valuation metric for HGV is its P/B ratio of 2.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, H has a P/B of 3.68.
These metrics, and several others, help HGV earn a Value grade of A, while H has been given a Value grade of C.
HGV sticks out from H in both our Zacks Rank and Style Scores models, so value investors will likely feel that HGV is the better option right now.