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HGV vs. MAR: Which Stock Should Value Investors Buy Now?
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Investors interested in stocks from the Hotels and Motels sector have probably already heard of Hilton Grand Vacations Inc. (HGV - Free Report) and Marriott International (MAR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Hilton Grand Vacations Inc. has a Zacks Rank of #2 (Buy), while Marriott International has a Zacks Rank of #4 (Sell) right now. This means that HGV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 11.49, while MAR has a forward P/E of 23.72. We also note that HGV has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MAR currently has a PEG ratio of 2.09.
Another notable valuation metric for HGV is its P/B ratio of 8.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MAR has a P/B of 12.93.
These metrics, and several others, help HGV earn a Value grade of A, while MAR has been given a Value grade of C.
HGV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HGV is likely the superior value option right now.
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HGV vs. MAR: Which Stock Should Value Investors Buy Now?
Investors interested in stocks from the Hotels and Motels sector have probably already heard of Hilton Grand Vacations Inc. (HGV - Free Report) and Marriott International (MAR - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. 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.
Hilton Grand Vacations Inc. has a Zacks Rank of #2 (Buy), while Marriott International has a Zacks Rank of #4 (Sell) right now. This means that HGV's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
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 11.49, while MAR has a forward P/E of 23.72. We also note that HGV has a PEG ratio of 1.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MAR currently has a PEG ratio of 2.09.
Another notable valuation metric for HGV is its P/B ratio of 8.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, MAR has a P/B of 12.93.
These metrics, and several others, help HGV earn a Value grade of A, while MAR has been given a Value grade of C.
HGV is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HGV is likely the superior value option right now.