Yum China (YUMC) Competitors

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

Which has more risk & volatility, HLT or YUMC?

Hilton Worldwide has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Yum China has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.

Does the media refer more to HLT or YUMC?

In the previous week, Hilton Worldwide had 18 more articles in the media than Yum China. MarketBeat recorded 28 mentions for Hilton Worldwide and 10 mentions for Yum China. Yum China's average media sentiment score of 1.30 beat Hilton Worldwide's score of 1.02 indicating that Yum China is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Hilton Worldwide	19 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Positive
Yum China	6 Very Positive mention(s)	3 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts recommend HLT or YUMC?

Hilton Worldwide presently has a consensus target price of $254.53, indicating a potential upside of 8.45%. Yum China has a consensus target price of $48.70, indicating a potential downside of 5.01%. Given Hilton Worldwide's higher possible upside, analysts plainly believe Hilton Worldwide is more favorable than Yum China.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hilton Worldwide	0 Sell rating(s)	11 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.42
Yum China	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	3.33

Does the MarketBeat Community prefer HLT or YUMC?

Hilton Worldwide received 419 more outperform votes than Yum China when rated by MarketBeat users. Likewise, 69.92% of users gave Hilton Worldwide an outperform vote while only 64.24% of users gave Yum China an outperform vote.

Company	Underperform	Outperform
Hilton Worldwide	Outperform Votes 816 69.92%	Underperform Votes 351 30.08%
Yum China	Outperform Votes 397 64.24%	Underperform Votes 221 35.76%

Is HLT or YUMC 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
Hilton Worldwide	13.74%	-54.47%	10.97%
Yum China	8.06%	13.83%	7.88%

Which has better valuation & earnings, HLT or YUMC?

Hilton Worldwide has higher earnings, but lower revenue 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
Hilton Worldwide	$11.17B	5.05	$1.54B	$6.15	38.16
Yum China	$11.30B	1.71	$911M	$2.33	22.00

Do institutionals and insiders have more ownership in HLT or YUMC?

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

Is HLT or YUMC a better dividend stock?

Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Yum China pays an annual dividend of $0.96 per share and has a dividend yield of 1.9%. Hilton Worldwide pays out 9.8% of its earnings in the form of a dividend. Yum China pays out 41.2% 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.

Summary

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