WallStSmart

Hilton Worldwide Holdings Inc (HLT)vsHuazhu Group Ltd (HTHT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 411% more annual revenue ($25.31B vs $4.95B). HLT leads profitability with a 29.4% 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+).

HLT

Buy

52

out of 100

Grade: C-

Growth: 5.3Profit: 8.0Value: 7.3Quality: 3.8
Piotroski: 4/9Altman Z: 0.92

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

HLTSignificantly Overvalued (-681.2%)

Margin of Safety

-681.2%

Fair Value

$41.62

Current Price

$303.16

$261.54 premium

UndervaluedFair: $41.62Overvalued
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

HLT3 strengths · Avg: 9.3/10
Operating MarginProfitability
46.3%10/10

Strong operational efficiency at 46.3%

Market CapQuality
$69.71B9/10

Large-cap with strong market position

Profit MarginProfitability
29.4%9/10

Keeps 29 of every $100 in revenue as profit

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

HLT4 concerns · Avg: 2.3/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

P/E RatioValuation
49.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-38.5%2/10

Earnings declined 38.5%

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

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 : HLT

The strongest argument for HLT centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 29.4% and operating margin at 46.3%. PEG of 1.38 suggests the stock is reasonably priced for its growth.

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 : HLT

The primary concerns for HLT are Return on Equity, P/E Ratio, EPS Growth. A P/E of 49.0x leaves little room for execution misses.

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

HLT carries more volatility with a beta of 1.12 — 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.

Monitor LODGING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HTHT scores higher overall (80/100 vs 52/100), 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.

Hilton Worldwide Holdings Inc

CONSUMER CYCLICAL · LODGING · USA

Hilton Worldwide Holdings Inc., formerly Hilton Hotels Corporation, is an American multinational hospitality company that manages and franchises a broad portfolio of hotels and resorts.

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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