Choice Hotels International Inc (CHH)vsInterContinental Hotels Group PLC ADR (IHG)
CHH
Choice Hotels International Inc
$96.77
-1.49%
CONSUMER CYCLICAL · Cap: $4.53B
IHG
InterContinental Hotels Group PLC ADR
$153.83
+0.69%
CONSUMER CYCLICAL · Cap: $22.70B
Smart Verdict
WallStSmart Research — data-driven comparison
InterContinental Hotels Group PLC ADR generates 430% more annual revenue ($5.33B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 13.4%. IHG appears more attractively valued with a PEG of 1.30. CHH earns a higher WallStSmart Score of 60/100 (C+).
CHH
Buy60
out of 100
Grade: C+
IHG
Hold43
out of 100
Grade: D
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
-73.0%
Fair Value
$84.24
Current Price
$153.83
$69.59 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
Conservative balance sheet, low leverage
Strong operational efficiency at 25.1%
Areas to Watch
Expensive relative to growth rate
Trading at 30.4x book value
Earnings declined 19.4%
Elevated debt levels
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 0.0% — below average capital efficiency
Earnings declined 5.4%
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 : IHG
The strongest argument for IHG centers on Debt/Equity, Operating Margin. PEG of 1.30 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 : IHG
The primary concerns for IHG are P/E Ratio, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
CHH profiles as a mature stock while IHG is a value play — different risk/reward profiles.
IHG carries more volatility with a beta of 1.02 — expect wider price swings.
CHH is growing revenue faster at 7.1% — sustainability is the question.
IHG generates stronger free cash flow (345M), providing more financial flexibility.
Bottom Line
CHH scores higher overall (60/100 vs 43/100), backed by strong 32.6% 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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