WallStSmart

Choice Hotels International Inc (CHH)vsHyatt Hotels Corporation (H)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hyatt Hotels Corporation generates 237% more annual revenue ($3.39B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 2.3%. H appears more attractively valued with a PEG of 0.79. CHH earns a higher WallStSmart Score of 60/100 (C+).

CHH

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.29

H

Buy

53

out of 100

Grade: C-

Growth: 7.3Profit: 5.0Value: 4.0Quality: 3.5
Piotroski: 3/9Altman Z: 1.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-70.0%)

Margin of Safety

-70.0%

Fair Value

$64.15

Current Price

$96.77

$32.62 premium

UndervaluedFair: $64.15Overvalued
HSignificantly Overvalued (-43.9%)

Margin of Safety

-43.9%

Fair Value

$117.15

Current Price

$163.07

$45.92 premium

UndervaluedFair: $117.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.5/10
Return on EquityProfitability
251.6%10/10

Every $100 of equity generates 252 in profit

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
37.7%10/10

Strong operational efficiency at 37.7%

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

H2 strengths · Avg: 9.0/10
EPS GrowthGrowth
110.5%10/10

Earnings expanding 110.5% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Areas to Watch

CHH4 concerns · Avg: 2.3/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
30.4x2/10

Trading at 30.4x book value

EPS GrowthGrowth
-19.4%2/10

Earnings declined 19.4%

Debt/EquityHealth
14.821/10

Elevated debt levels

H4 concerns · Avg: 3.0/10
Return on EquityProfitability
2.4%3/10

ROE of 2.4% — below average capital efficiency

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Debt/EquityHealth
1.363/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CHH

The strongest argument for CHH centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 32.6% and operating margin at 37.7%.

Bull Case : H

The strongest argument for H centers on EPS Growth, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 14.82 is elevated, increasing financial risk.

Bear Case : H

The primary concerns for H are Return on Equity, Profit Margin, Debt/Equity. A P/E of 198.9x leaves little room for execution misses. Thin 2.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

CHH profiles as a mature stock while H is a value play — different risk/reward profiles.

H carries more volatility with a beta of 1.34 — expect wider price swings.

CHH is growing revenue faster at 7.1% — sustainability is the question.

CHH generates stronger free cash flow (64M), providing more financial flexibility.

Bottom Line

CHH scores higher overall (60/100 vs 53/100), backed by strong 32.6% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Choice Hotels International Inc

CONSUMER CYCLICAL · LODGING · USA

Choice Hotels International, Inc. is a global hotel franchisor. The company is headquartered in Rockville, Maryland.

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Hyatt Hotels Corporation

CONSUMER CYCLICAL · LODGING · USA

Hyatt Hotels Corporation is a hotel company in the United States and internationally. The company is headquartered in Chicago, Illinois.

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