WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hilton Worldwide Holdings Inc generates 405% more annual revenue ($4.95B vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 29.4%. HLT appears more attractively valued with a PEG of 1.38. CHH earns a higher WallStSmart Score of 58/100 (C).

CHH

Buy

58

out of 100

Grade: C

Growth: 3.3Profit: 9.5Value: 7.3Quality: 4.5
Piotroski: 5/9Altman Z: 2.29

HLT

Buy

52

out of 100

Grade: C-

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-103.0%)

Margin of Safety

-103.0%

Fair Value

$53.72

Current Price

$99.38

$45.66 premium

UndervaluedFair: $53.72Overvalued
HLTSignificantly Overvalued (-681.2%)

Margin of Safety

-681.2%

Fair Value

$41.62

Current Price

$303.16

$261.54 premium

UndervaluedFair: $41.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.5/10
Return on EquityProfitability
54.4%10/10

Every $100 of equity generates 54 in profit

Profit MarginProfitability
37.7%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
45.0%10/10

Strong operational efficiency at 45.0%

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

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

Areas to Watch

CHH4 concerns · Avg: 3.0/10
PEG RatioValuation
1.904/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Price/BookValuation
25.0x2/10

Trading at 25.0x book value

EPS GrowthGrowth
-13.6%2/10

Earnings declined 13.6%

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

Comparative Analysis Report

WallStSmart Research

Bull Case : CHH

The strongest argument for CHH centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 37.7% and operating margin at 45.0%.

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.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Revenue Growth, Price/Book. Debt-to-equity of 11.11 is elevated, increasing financial risk.

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.

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 1.12 — expect wider price swings.

HLT is growing revenue faster at 7.0% — sustainability is the question.

HLT generates stronger free cash flow (151M), providing more financial flexibility.

Bottom Line

CHH scores higher overall (58/100 vs 52/100), backed by strong 37.7% margins. 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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