Choice Hotels International Inc (CHH)vsThe Home Depot Inc (HD)
CHH
Choice Hotels International Inc
$96.77
-1.49%
CONSUMER CYCLICAL · Cap: $4.53B
HD
The Home Depot Inc
$310.91
+0.70%
CONSUMER CYCLICAL · Cap: $304.98B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 16714% more annual revenue ($169.18B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 8.4%. HD appears more attractively valued with a PEG of 1.73. CHH earns a higher WallStSmart Score of 60/100 (C+).
CHH
Buy60
out of 100
Grade: C+
HD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-70.0%
Fair Value
$64.15
Current Price
$96.77
$32.62 premium
Margin of Safety
-41.8%
Fair Value
$217.78
Current Price
$310.91
$93.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 252 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 37.7%
Attractively priced relative to earnings
Mega-cap, among the largest globally
Every $100 of equity generates 86 in profit
Safe zone — low bankruptcy risk
Generating 4.5B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 30.4x book value
Earnings declined 19.4%
Elevated debt levels
Expensive relative to growth rate
Trading at 18.7x book value
4.6% earnings growth
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull 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 : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 3.77 is elevated, increasing financial risk.
Key Dynamics to Monitor
CHH profiles as a mature stock while HD is a value play — different risk/reward profiles.
HD carries more volatility with a beta of 0.95 — expect wider price swings.
CHH is growing revenue faster at 7.1% — sustainability is the question.
HD generates stronger free cash flow (4.5B), providing more financial flexibility.
Bottom Line
CHH scores higher overall (60/100 vs 58/100), 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.
Visit Website →The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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