Reviewing Hilton Worldwide (NYSE:HLT) and MTY Food Group (OTCMKTS:MTYFF)

MTY Food Group (OTCMKTS:MTYFF) and Hilton Worldwide (NYSE:HLT) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

25.1% of MTY Food Group shares are held by institutional investors. Comparatively, 95.9% of Hilton Worldwide shares are held by institutional investors. 2.7% 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 MTY Food Group and Hilton Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MTY Food Group	N/A	N/A	N/A
Hilton Worldwide	12.69%	-35.24%	11.84%

Dividends

MTY Food Group pays an annual dividend of $0.33 per share and has a dividend yield of 1.3%. Hilton Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 0.2%. MTY Food Group pays out 23.0% of its earnings in the form of a dividend. Hilton Worldwide pays out 8.8% 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MTY Food Group and Hilton Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MTY Food Group	0	3	0	0	2.00
Hilton Worldwide	0	7	16	1	2.75

Hilton Worldwide has a consensus price target of $353.82, indicating a potential upside of 7.25%. Given Hilton Worldwide’s stronger consensus rating and higher probable upside, analysts plainly believe Hilton Worldwide is more favorable than MTY Food Group.

Valuation and Earnings

This table compares MTY Food Group and Hilton Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MTY Food Group	N/A	N/A	N/A	$1.41	17.65
Hilton Worldwide	$12.48 billion	5.95	$1.46 billion	$6.81	48.45

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

Summary

Hilton Worldwide beats MTY Food Group on 12 of the 14 factors compared between the two stocks.

About MTY Food Group

MTY Food Group Inc. operates and franchises quick-service, fast-casual, and casual dining restaurants in Canada, the United States, and internationally. It also sells retail products under a multitude of banners. The company was formerly known as iNsu Innovations Group Inc. and changed its name to MTY Food Group Inc. in July 2003. MTY Food Group Inc. was founded in 1979 and is headquartered in Saint-Laurent, Canada.

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.