Yum China (YUMC) Competitors

Yum China (NYSE:YUMC) and Hilton Worldwide (NYSE:HLT) are both large-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, community ranking, earnings, valuation, risk and media sentiment.

Do analysts prefer YUMC or HLT?

Yum China currently has a consensus target price of $49.57, indicating a potential upside of 4.77%. Hilton Worldwide has a consensus target price of $246.61, indicating a potential downside of 7.45%. Given Yum China's stronger consensus rating and higher possible upside, analysts plainly believe Yum China is more favorable than Hilton Worldwide.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yum China	0 Sell rating(s)	0 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.25
Hilton Worldwide	0 Sell rating(s)	12 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.40

Is YUMC or HLT a better dividend stock?

Yum China pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. Yum China pays out 27.5% of its earnings in the form of a dividend. Hilton Worldwide pays out 9.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Which has more risk and volatility, YUMC or HLT?

Yum China has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Hilton Worldwide has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Which has preferable valuation and earnings, YUMC or HLT?

Hilton Worldwide has lower revenue, but higher earnings than Yum China. Yum China is trading at a lower price-to-earnings ratio than Hilton Worldwide, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yum China	$11.30B	1.59	$911M	$2.33	20.31
Hilton Worldwide	$11.17B	5.74	$1.54B	$6.15	43.33

Does the media refer more to YUMC or HLT?

In the previous week, Hilton Worldwide had 11 more articles in the media than Yum China. MarketBeat recorded 23 mentions for Hilton Worldwide and 12 mentions for Yum China. Hilton Worldwide's average media sentiment score of 1.50 beat Yum China's score of 0.94 indicating that Hilton Worldwide is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Yum China	9 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Hilton Worldwide	20 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community favor YUMC or HLT?

Hilton Worldwide received 418 more outperform votes than Yum China when rated by MarketBeat users. Likewise, 70.02% of users gave Hilton Worldwide an outperform vote while only 64.34% of users gave Yum China an outperform vote.

Company	Underperform	Outperform
Yum China	Outperform Votes 397 64.34%	Underperform Votes 220 35.66%
Hilton Worldwide	Outperform Votes 815 70.02%	Underperform Votes 349 29.98%

Is YUMC or HLT more profitable?

Hilton Worldwide has a net margin of 13.74% compared to Yum China's net margin of 8.06%. Yum China's return on equity of 13.83% beat Hilton Worldwide's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Yum China	8.06%	13.83%	7.88%
Hilton Worldwide	13.74%	-54.47%	10.97%

Do insiders and institutionals believe in YUMC or HLT?

85.6% of Yum China shares are held by institutional investors. Comparatively, 95.9% of Hilton Worldwide shares are held by institutional investors. 0.3% of Yum China shares are held by company insiders. Comparatively, 2.5% of Hilton Worldwide shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Hilton Worldwide beats Yum China on 15 of the 21 factors compared between the two stocks.