Critical Comparison: Vail Resorts (NYSE:MTN) vs. H.I.S. (OTCMKTS:HISJF)

Vail Resorts (NYSE:MTN) and H.I.S. (OTCMKTS:HISJF) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Valuation & Earnings

This table compares Vail Resorts and H.I.S.”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vail Resorts	$2.89 billion	1.91	$230.40 million	$7.82	19.01
H.I.S.	$1.81 billion	0.54	$45.58 million	$0.61	21.46

Vail Resorts has higher revenue and earnings than H.I.S.. Vail Resorts is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Vail Resorts and H.I.S.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vail Resorts	9.81%	30.25%	5.13%
H.I.S.	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Vail Resorts and H.I.S., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vail Resorts	1	6	3	0	2.20
H.I.S.	0	0	0	0	0.00

Vail Resorts presently has a consensus target price of $183.60, suggesting a potential upside of 23.49%. Given Vail Resorts’ stronger consensus rating and higher possible upside, equities analysts clearly believe Vail Resorts is more favorable than H.I.S..

Volatility & Risk

Vail Resorts has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, H.I.S. has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.

Institutional and Insider Ownership

94.9% of Vail Resorts shares are held by institutional investors. 1.2% of Vail Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Vail Resorts beats H.I.S. on 13 of the 14 factors compared between the two stocks.

About Vail Resorts

Vail Resorts, Inc., through its subsidiaries, operates mountain resorts and regional ski areas in the United States. It operates through three segments: Mountain, Lodging, and Real Estate. The Mountain segment operates 41 destination mountain resorts and regional ski areas. This segment is also involved in the ancillary activities, including ski school, dining, and retail/rental operations, as well as real estate brokerage activities. The Lodging segment owns and/or manages various luxury hotels and condominiums under the RockResorts brand; other lodging properties; various condominiums located in proximity to the company's mountain resorts; destination resorts; and golf courses, as well as offers resort ground transportation services. This segment operates owned and managed hotel and condominium units. The Real Estate segment owns, develops, and sells real estate properties. The company was founded in 1845 and is based in Broomfield, Colorado.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.