WallStSmart

Choice Hotels International Inc (CHH)vsHilton Worldwide Holdings Inc (HLT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hilton Worldwide Holdings Inc generates 413% more annual revenue ($5.07B vs $987.82M). CHH leads profitability with a 35.0% profit margin vs 30.4%. HLT appears more attractively valued with a PEG of 1.65. HLT earns a higher WallStSmart Score of 62/100 (C+).

CHH

Buy

54

out of 100

Grade: C-

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

HLT

Buy

62

out of 100

Grade: C+

Growth: 8.0Profit: 8.0Value: 3.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.29
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

Intrinsic value data unavailable for HLT.

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%

HLT5 strengths · Avg: 9.4/10
Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
57.4%10/10

Strong operational efficiency at 57.4%

Debt/EquityHealth
-2.2110/10

Conservative balance sheet, low leverage

Market CapQuality
$75.77B9/10

Large-cap with strong market position

EPS GrowthGrowth
35.0%8/10

Earnings expanding 35.0% YoY

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%

HLT4 concerns · Avg: 2.8/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

P/E RatioValuation
50.7x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.292/10

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 : HLT

The strongest argument for HLT centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 30.4% and operating margin at 57.4%. Revenue growth of 11.0% demonstrates continued momentum.

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 : HLT

The primary concerns for HLT are PEG Ratio, Return on Equity, P/E Ratio. A P/E of 50.7x leaves little room for execution misses.

Key Dynamics to Monitor

CHH profiles as a value stock while HLT is a mature play — different risk/reward profiles.

HLT carries more volatility with a beta of 1.07 — expect wider price swings.

HLT is growing revenue faster at 11.0% — sustainability is the question.

HLT generates stronger free cash flow (609M), providing more financial flexibility.

Bottom Line

HLT scores higher overall (62/100 vs 54/100), backed by strong 30.4% margins and 11.0% revenue growth. Both earn "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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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.

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