WallStSmart

Choice Hotels International Inc (CHH)vsWyndham Hotels & Resorts Inc (WH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Wyndham Hotels & Resorts Inc generates 41% more annual revenue ($1.42B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 14.6%. WH appears more attractively valued with a PEG of 0.49. WH earns a higher WallStSmart Score of 67/100 (B-).

CHH

Buy

60

out of 100

Grade: C+

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

WH

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 8.0Value: 6.0Quality: 3.0
Piotroski: 3/9Altman Z: 0.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-68.8%)

Margin of Safety

-68.8%

Fair Value

$64.59

Current Price

$110.02

$45.43 premium

UndervaluedFair: $64.59Overvalued
WHSignificantly Overvalued (-57.1%)

Margin of Safety

-57.1%

Fair Value

$50.60

Current Price

$74.35

$23.75 premium

UndervaluedFair: $50.60Overvalued

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
15.3x8/10

Attractively priced relative to earnings

WH4 strengths · Avg: 9.5/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

Return on EquityProfitability
43.2%10/10

Every $100 of equity generates 43 in profit

Operating MarginProfitability
47.7%10/10

Strong operational efficiency at 47.7%

EPS GrowthGrowth
20.4%8/10

Earnings expanding 20.4% YoY

Areas to Watch

CHH4 concerns · Avg: 2.3/10
PEG RatioValuation
1.764/10

Expensive relative to growth rate

Price/BookValuation
34.6x2/10

Trading at 34.6x book value

EPS GrowthGrowth
-19.4%2/10

Earnings declined 19.4%

Debt/EquityHealth
14.821/10

Elevated debt levels

WH4 concerns · Avg: 3.3/10
P/E RatioValuation
27.4x4/10

Moderate valuation

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

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 : WH

The strongest argument for WH centers on PEG Ratio, Return on Equity, Operating Margin. PEG of 0.49 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 : WH

The primary concerns for WH are P/E Ratio, Price/Book, Piotroski F-Score. Debt-to-equity of 5.74 is elevated, increasing financial risk.

Key Dynamics to Monitor

CHH profiles as a mature stock while WH is a declining play — different risk/reward profiles.

CHH carries more volatility with a beta of 0.71 — expect wider price swings.

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

WH generates stronger free cash flow (82M), providing more financial flexibility.

Bottom Line

WH scores higher overall (67/100 vs 60/100). 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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Wyndham Hotels & Resorts Inc

CONSUMER CYCLICAL · LODGING · USA

Wyndham Hotels & Resorts, Inc. is a global hotel franchisor. The company is headquartered in Parsippany, New Jersey.

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