WallStSmart

Choice Hotels International Inc (CHH)vsHyatt Hotels Corporation (H)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hyatt Hotels Corporation generates 249% more annual revenue ($3.44B vs $987.82M). CHH leads profitability with a 35.0% profit margin vs -1.0%. H appears more attractively valued with a PEG of 0.79. CHH earns a higher WallStSmart Score of 54/100 (C-).

CHH

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 9.5Value: 4.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.29

H

Hold

48

out of 100

Grade: D+

Growth: 7.3Profit: 4.0Value: 5.0Quality: 4.0
Piotroski: 4/9Altman Z: 1.36
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-75.6%)

Margin of Safety

-75.6%

Fair Value

$62.08

Current Price

$109.81

$47.73 premium

UndervaluedFair: $62.08Overvalued
HSignificantly Overvalued (-47.8%)

Margin of Safety

-47.8%

Fair Value

$114.13

Current Price

$193.06

$78.93 premium

UndervaluedFair: $114.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.0/10
Return on EquityProfitability
251.6%10/10

Every $100 of equity generates 252 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

P/E RatioValuation
14.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
27.8%8/10

Strong operational efficiency at 27.8%

H2 strengths · Avg: 9.0/10
EPS GrowthGrowth
110.5%10/10

Earnings expanding 110.5% YoY

PEG RatioValuation
0.798/10

Growing faster than its price suggests

Areas to Watch

CHH4 concerns · Avg: 3.0/10
PEG RatioValuation
2.424/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

Price/BookValuation
36.1x2/10

Trading at 36.1x book value

EPS GrowthGrowth
-53.2%2/10

Earnings declined 53.2%

H4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.403/10

Elevated debt levels

Return on EquityProfitability
-1.1%2/10

ROE of -1.1% — below average capital efficiency

Revenue GrowthGrowth
-3.5%2/10

Revenue declined 3.5%

Altman Z-ScoreHealth
1.362/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CHH

The strongest argument for CHH centers on Return on Equity, Profit Margin, P/E Ratio. Profitability is solid with margins at 35.0% and operating margin at 27.8%.

Bull Case : H

The strongest argument for H centers on EPS Growth, PEG Ratio. PEG of 0.79 suggests the stock is reasonably priced for its growth.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 15.35 is elevated, increasing financial risk.

Bear Case : H

The primary concerns for H are Debt/Equity, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

CHH profiles as a value stock while H is a turnaround play — different risk/reward profiles.

H carries more volatility with a beta of 1.33 — expect wider price swings.

CHH is growing revenue faster at 3.5% — sustainability is the question.

H generates stronger free cash flow (77M), providing more financial flexibility.

Bottom Line

CHH scores higher overall (54/100 vs 48/100), backed by strong 35.0% 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.

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Hyatt Hotels Corporation

CONSUMER CYCLICAL · LODGING · USA

Hyatt Hotels Corporation is a hotel company in the United States and internationally. The company is headquartered in Chicago, Illinois.

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