WallStSmart

GreenTree Hospitality Group Ltd (GHG)vsHuazhu Group Ltd (HTHT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 2261% more annual revenue ($25.91B vs $1.10B). HTHT leads profitability with a 19.3% profit margin vs 15.2%. GHG trades at a lower P/E of 4.7x. HTHT earns a higher WallStSmart Score of 70/100 (B-).

GHG

Hold

43

out of 100

Grade: D

Growth: 3.3Profit: 4.0Value: 8.3Quality: 5.0
Piotroski: 5/9Altman Z: 0.77

HTHT

Strong Buy

70

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.7Quality: 3.0
Piotroski: 4/9Altman Z: 0.95
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHGUndervalued (+85.1%)

Margin of Safety

+85.1%

Fair Value

$9.66

Current Price

$1.13

$8.53 discount

UndervaluedFair: $9.66Overvalued

Intrinsic value data unavailable for HTHT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHG2 strengths · Avg: 10.0/10
P/E RatioValuation
4.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

HTHT4 strengths · Avg: 9.0/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
45.7%10/10

Every $100 of equity generates 46 in profit

P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

Areas to Watch

GHG4 concerns · Avg: 2.3/10
Market CapQuality
$114.01M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-1.1%2/10

ROE of -1.1% — below average capital efficiency

Revenue GrowthGrowth
-29.5%2/10

Revenue declined 29.5%

EPS GrowthGrowth
-6.6%2/10

Earnings declined 6.6%

HTHT3 concerns · Avg: 1.7/10
EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Debt/EquityHealth
3.271/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GHG

The strongest argument for GHG centers on P/E Ratio, Price/Book. Profitability is solid with margins at 15.2% and operating margin at -4.5%.

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, P/E Ratio. Profitability is solid with margins at 19.3% and operating margin at 24.8%. Revenue growth of 11.1% demonstrates continued momentum.

Bear Case : GHG

The primary concerns for GHG are Market Cap, Return on Equity, Revenue Growth.

Bear Case : HTHT

The primary concerns for HTHT are EPS Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.27 is elevated, increasing financial risk.

Key Dynamics to Monitor

GHG profiles as a declining stock while HTHT is a mature play — different risk/reward profiles.

GHG carries more volatility with a beta of 0.62 — expect wider price swings.

HTHT is growing revenue faster at 11.1% — sustainability is the question.

HTHT generates stronger free cash flow (51M), providing more financial flexibility.

Bottom Line

HTHT scores higher overall (70/100 vs 43/100), backed by strong 19.3% margins and 11.1% revenue growth. GHG offers better value entry with a 85.1% margin of safety. Both earn "Strong 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.

GreenTree Hospitality Group Ltd

CONSUMER CYCLICAL · LODGING · China

GreenTree Hospitality Group Ltd., develops and sells leased and operated, franchised and managed hotels under the GreenTree brand in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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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.

Visit Website →

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