WallStSmart

Huazhu Group Ltd (HTHT)vsSoho House & Co Inc. (SHCO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 1863% more annual revenue ($25.31B vs $1.29B). HTHT leads profitability with a 20.1% profit margin vs -6.0%. HTHT earns a higher WallStSmart Score of 80/100 (B+).

HTHT

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 10.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.92

SHCO

Avoid

33

out of 100

Grade: F

Growth: 6.7Profit: 3.0Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -0.52
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTHTUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$108.58

Current Price

$49.21

$59.37 discount

UndervaluedFair: $108.58Overvalued

Intrinsic value data unavailable for SHCO.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SHCO1 strengths · Avg: 10.0/10
Debt/EquityHealth
-7.1310/10

Conservative balance sheet, low leverage

Areas to Watch

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

SHCO4 concerns · Avg: 3.3/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.76B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SHCO

The strongest argument for SHCO centers on Debt/Equity. Revenue growth of 11.2% demonstrates continued momentum.

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.

Bear Case : SHCO

The primary concerns for SHCO are EPS Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

HTHT profiles as a mature stock while SHCO is a turnaround play — different risk/reward profiles.

SHCO carries more volatility with a beta of 0.69 — expect wider price swings.

SHCO is growing revenue faster at 11.2% — sustainability is the question.

HTHT generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

HTHT scores higher overall (80/100 vs 33/100), backed by strong 20.1% margins. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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Soho House & Co Inc.

CONSUMER CYCLICAL · LODGING · USA

Soho House & Co Inc. is a global membership-driven hospitality company that operates a collection of private members' clubs, hotels, and restaurants, catering primarily to creative professionals and elites across various cities. Known for its unique blend of luxury and community, Soho House offers a distinctive experience focused on quality design and personalized service. With a growing portfolio strategically positioned in key urban locations, the company aims to capitalize on the increasing demand for premium lifestyle offerings. Soho House continues to expand its global footprint while enhancing its brand value through tailored experiences that foster creativity and connection among its members.

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