Hilton Worldwide (NYSE:HLT) vs. Accor (OTCMKTS:ACCYY) Critical Analysis

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hilton Worldwide and Accor, as provided by MarketBeat.com.

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

Hilton Worldwide currently has a consensus price target of $213.95, indicating a potential downside of 10.10%. Given Hilton Worldwide’s higher probable upside, research analysts clearly believe Hilton Worldwide is more favorable than Accor.

Institutional and 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Hilton Worldwide and Accor’s 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%
Accor	N/A	N/A	N/A

Earnings & Valuation

This table compares Hilton Worldwide and Accor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hilton Worldwide	$10.81 billion	5.51	$1.14 billion	$4.60	51.73
Accor	N/A	N/A	N/A	N/A	N/A

Hilton Worldwide has higher revenue and earnings than Accor.

Summary

Hilton Worldwide beats Accor on 7 of the 8 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 Accor

Accor SA operates a chain of hotels worldwide. It operates through three segments: Management & Franchise; Services to Owners; and Hotel Assets & Others. The company owns, operates, manages, and franchises hotels. It also provides digital services to independent hotel operators through D-edge platform; Gekko solutions for leisure and travel industry and large companies; and concierge and customized services through John Paul, as well as hotel booking services; and other services in events, fine dining, and entertainment through Paris Society and Potel & Chabot platforms. In addition, the company offers distribution activities, such as private sales of hotel accommodation and luxury vacations through VeryChic platform; rental of private residences operated by onefinestay; and coworking spaces through Wojo and Mama Works. Further, it provides hotel management, procurement, cash management, IT, and advertising services, as well as various advisory services. Accor SA was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.