Pay Less, Gain More: ABNB, BKNG Top Hyatt Hotels Stock
ABNB, BKNG are Hyatt Hotels’s peers in Hotels, Resorts & Cruise Lines industry that have:
1) Lower valuation (P/OpInc) compared to Hyatt Hotels stock
2) But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying ABNB, BKNG stocks vs. H stock
When markets turn, single-asset exposure hurts. Smart financial advisors protect client wealth by working with partners who allocate across multiple asset classes – including the High Quality Portfolio.
- ABNB, BKNG Look Smarter Buy Than Hyatt Hotels Stock
- Better Bet Than Hyatt Hotels Stock: Pay Less To Get More From CCL
- What’s Happening With Hyatt’s Stock?
- What’s Next For Hyatt Stock?
- More Room Left For Hyatt Stock Gains After 15% Growth This Year?
- Up 14% This Year As Travel Demand Holds Up, Will Hyatt Stock See Further Gains?
Key Metrics Compared
| Metric | H | ABNB | BKNG |
|---|---|---|---|
| P/OpInc* | 31.9x | 25.8x | 16.9x |
| LTM OpInc Growth | 37.7% | 66.3% | 39.6% |
| 3Y Avg OpInc Growth | 15.7% | 22.8% | 26.3% |
| LTM Revenue Growth | 3.1% | 10.2% | 13.0% |
| 3Y Avg Revenue Growth | 9.1% | 14.2% | 17.8% |
OpInc = Operating Income, P/OpInc = Price To Operating Income Ratio
But do these numbers tell the full story? Read Buy or Sell H Stock to see if Hyatt Hotels still has an edge that holds up under the hood. As a quick background, Hyatt Hotels (H) provides hospitality services by managing, franchising, licensing, owning, and leasing a global portfolio of approximately 515 hotels with 171,399 rooms worldwide.
This is just one approach to evaluate investments. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Is The Mismatch In Stock Price Temporary
One way to check if Hyatt Hotels stock is expensive now versus the other tickers would be to see how these metrics compared across companies exactly a year ago. Specifically, if there has been a marked reversal in the trend for Hyatt Hotels in the last 12 months, then there is a chance that the current mismatch is likely to reverse. On the other hand, a persistent underperformance in revenue and operating income growth for Hyatt Hotels would reinforce the conclusion that the stock is expensive compared to its peers, but may not revert soon
Key Metrics Compared 1 Yr Prior
| Metric | H | ABNB | BKNG |
|---|---|---|---|
| P/OpInc* | 33.7x | 31.9x | 19.7x |
| LTM OpInc Growth | 26.3% | 63.0% | 29.3% |
| 3Y Avg OpInc Growth | 57.5% | 28.8% | 27.6% |
| LTM Revenue Growth | 0.9% | 10.2% | 11.7% |
| 3Y Avg Revenue Growth | 14.2% | 16.3% | 19.9% |
OpInc = Operating Income
Additional Metrics To Consider
| Metric | H | ABNB | BKNG |
|---|---|---|---|
| P/S | 2.1x | 5.9x | 5.8x |
| Market Cap (Current) | $ 14.3 Bil | $ 69.9 Bil | $ 151.9 Bil |
| LTM Revenue | $ 6.91 Bil | $ 11.94 Bil | $ 26.04 Bil |
| LTM Opinc | $ 449.00 Mil | $ 2.71 Bil | $ 8.98 Bil |
| LTM Op Margin | 6.5% | 22.6% | 34.5% |
OpInc = Operating Income
Alternate buying based on valuation, while attractive, needs to be evaluated carefully from multiple angles. Such multi-factor analysis is exactly how we construct Trefis portfolio strategies. If you want upside with a smoother ride than an individual stock, consider the High Quality portfolio, which has outperformed the its benchmark – a combination of S&P 500, Russell, and S&P midcap index.