Choice Hotels International Inc (CHH)vsInterContinental Hotels Group PLC ADR (IHG)
CHH
Choice Hotels International Inc
$99.38
+0.38%
CONSUMER CYCLICAL · Cap: $4.60B
IHG
InterContinental Hotels Group PLC ADR
$134.14
+1.42%
CONSUMER CYCLICAL · Cap: $19.76B
Smart Verdict
WallStSmart Research — data-driven comparison
InterContinental Hotels Group PLC ADR generates 429% more annual revenue ($5.19B vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 14.6%. IHG appears more attractively valued with a PEG of 0.96. CHH earns a higher WallStSmart Score of 58/100 (C).
CHH
Buy58
out of 100
Grade: C
IHG
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-103.0%
Fair Value
$53.72
Current Price
$99.38
$45.66 premium
Margin of Safety
-56.5%
Fair Value
$93.11
Current Price
$134.14
$41.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 54 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 45.0%
Attractively priced relative to earnings
Growing faster than its price suggests
Strong operational efficiency at 21.6%
Areas to Watch
Expensive relative to growth rate
2.4% revenue growth
Trading at 25.0x book value
Earnings declined 13.6%
Moderate valuation
2.7% revenue growth
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
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 37.7% and operating margin at 45.0%.
Bull Case : IHG
The strongest argument for IHG centers on PEG Ratio, Operating Margin. PEG of 0.96 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 : IHG
The primary concerns for IHG are P/E Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
IHG carries more volatility with a beta of 1.07 — expect wider price swings.
IHG is growing revenue faster at 2.7% — sustainability is the question.
IHG generates stronger free cash flow (563M), providing more financial flexibility.
Monitor LODGING industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CHH scores higher overall (58/100 vs 49/100), backed by strong 37.7% margins. Both earn "Buy" and "Hold" 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 →InterContinental Hotels Group PLC ADR
CONSUMER CYCLICAL · LODGING · USA
InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company is headquartered in Denham, the United Kingdom.
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