WallStSmart

Choice Hotels International Inc (CHH)vsHuazhu Group Ltd (HTHT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 2481% more annual revenue ($25.31B vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 20.1%. HTHT appears more attractively valued with a PEG of 0.27. HTHT earns a higher WallStSmart Score of 80/100 (B+).

CHH

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 7.3Quality: 4.5
Piotroski: 5/9Altman Z: 2.29

HTHT

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 10.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-103.0%)

Margin of Safety

-103.0%

Fair Value

$53.72

Current Price

$99.38

$45.66 premium

UndervaluedFair: $53.72Overvalued
HTHTUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$108.58

Current Price

$49.21

$59.37 discount

UndervaluedFair: $108.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.5/10
Return on EquityProfitability
54.4%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
37.7%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

HTHT6 strengths · Avg: 8.8/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
40.6%10/10

Every $100 of equity generates 41 in profit

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
29.1%8/10

Strong operational efficiency at 29.1%

EPS GrowthGrowth
22.3%8/10

Earnings expanding 22.3% YoY

Free Cash FlowQuality
$3.15B8/10

Generating 3.2B in free cash flow

Areas to Watch

CHH4 concerns · Avg: 3.0/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Price/BookValuation
25.0x2/10

Trading at 25.0x book value

EPS GrowthGrowth
-13.6%2/10

Earnings declined 13.6%

HTHT3 concerns · Avg: 2.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Debt/EquityHealth
3.131/10

Elevated debt levels

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 37.7% and operating margin at 45.0%.

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 29.1%. PEG of 0.27 suggests the stock is reasonably priced for its growth.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 11.11 is elevated, increasing financial risk.

Bear Case : HTHT

The primary concerns for HTHT are Price/Book, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.13 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CHH carries more volatility with a beta of 0.77 — expect wider price swings.

HTHT is growing revenue faster at 8.3% — sustainability is the question.

HTHT generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

HTHT scores higher overall (80/100 vs 58/100), backed by strong 20.1% margins. Both earn "Strong 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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Huazhu Group Ltd

CONSUMER CYCLICAL · LODGING · China

Huazhu Group Limited, develops leased and owned, managed and franchised hotels mainly in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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