Investors in Hilton Grand Vacations (NYSE:HGV) have seen stellar returns of 125% over the past three years

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For instance the Hilton Grand Vacations Inc. (NYSE:HGV) share price is 125% higher than it was three years ago. That sort of return is as solid as granite. We note the stock price is up 2.2% in the last seven days.

Now it’s worth having a look at the company’s fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for Hilton Grand Vacations

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During three years of share price growth, Hilton Grand Vacations achieved compound earnings per share growth of 20% per year. In comparison, the 31% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That’s not necessarily surprising considering the three-year track record of earnings growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth

earnings-per-share-growth

We know that Hilton Grand Vacations has improved its bottom line lately, but is it going to grow revenue? If you’re interested, you could check this free report showing consensus revenue forecasts.

A Different Perspective

It’s nice to see that Hilton Grand Vacations shareholders have

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At US$35.83, Is Bluegreen Vacations Holding Corporation (NYSE:BVH) Worth Looking At Closely?

While Bluegreen Vacations Holding Corporation (NYSE:BVH) might not be the most widely known stock at the moment, it received a lot of attention from a substantial price increase on the NYSE over the last few months. As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s take a look at Bluegreen Vacations Holding’s outlook and value based on the most recent financial data to see if the opportunity still exists.

Check out our latest analysis for Bluegreen Vacations Holding

What’s The Opportunity In Bluegreen Vacations Holding?

Good news, investors! Bluegreen Vacations Holding is still a bargain right now according to my price multiple model, which compares the company’s price-to-earnings ratio to the industry average. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 10.19x is currently well-below the industry average of 20.4x, meaning that it is trading at a cheaper price relative to its peers. What’s more interesting is that, Bluegreen Vacations Holding’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Bluegreen Vacations Holding look like?

earnings-and-revenue-growth

earnings-and-revenue-growth

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter

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Summit Hotel Properties (NYSE:INN) shareholders have endured a 49% loss from investing in the stock five years ago

Ideally, your overall portfolio should beat the market average. But the main game is to find enough winners to more than offset the losers So we wouldn’t blame long term Summit Hotel Properties, Inc. (NYSE:INN) shareholders for doubting their decision to hold, with the stock down 56% over a half decade. Shareholders have had an even rougher run lately, with the share price down 21% in the last 90 days.

Now let’s have a look at the company’s fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.

See our latest analysis for Summit Hotel Properties

Given that Summit Hotel Properties didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last five years Summit Hotel Properties saw its revenue shrink by 12% per year. That’s definitely a weaker result than most pre-profit companies report. Arguably, the market has responded appropriately to this business performance by sending the share price down 9% (annualized) in the same time period. It’s fair to say most investors don’t like to invest in loss making companies with falling revenue. This looks like a really risky stock to buy, at a glance.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

earnings-and-revenue-growth

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We’d be remiss not to mention the difference between Summit Hotel Properties’

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