WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Hilton Worldwide Holdings Inc generates 407% more annual revenue ($5.10B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 31.0%. HLT appears more attractively valued with a PEG of 1.27. CHH earns a higher WallStSmart Score of 60/100 (C+).

CHH

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 9.5Value: 4.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.29

HLT

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 5.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.01
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CHHSignificantly Overvalued (-70.0%)

Margin of Safety

-70.0%

Fair Value

$64.15

Current Price

$96.77

$32.62 premium

UndervaluedFair: $64.15Overvalued

Intrinsic value data unavailable for HLT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CHH4 strengths · Avg: 9.5/10
Return on EquityProfitability
251.6%10/10

Every $100 of equity generates 252 in profit

Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
37.7%10/10

Strong operational efficiency at 37.7%

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

HLT4 strengths · Avg: 9.8/10
Profit MarginProfitability
31.0%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
63.0%10/10

Strong operational efficiency at 63.0%

Debt/EquityHealth
-2.2210/10

Conservative balance sheet, low leverage

Market CapQuality
$68.91B9/10

Large-cap with strong market position

Areas to Watch

CHH4 concerns · Avg: 2.3/10
PEG RatioValuation
1.734/10

Expensive relative to growth rate

Price/BookValuation
30.4x2/10

Trading at 30.4x book value

EPS GrowthGrowth
-19.4%2/10

Earnings declined 19.4%

Debt/EquityHealth
14.821/10

Elevated debt levels

HLT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.5%4/10

2.5% revenue growth

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

P/E RatioValuation
45.0x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.012/10

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 32.6% and operating margin at 37.7%.

Bull Case : HLT

The strongest argument for HLT centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.0% and operating margin at 63.0%. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bear Case : CHH

The primary concerns for CHH are PEG Ratio, Price/Book, EPS Growth. Debt-to-equity of 14.82 is elevated, increasing financial risk.

Bear Case : HLT

The primary concerns for HLT are Revenue Growth, Return on Equity, P/E Ratio. A P/E of 45.0x leaves little room for execution misses.

Key Dynamics to Monitor

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

HLT carries more volatility with a beta of 1.06 — expect wider price swings.

CHH is growing revenue faster at 7.1% — sustainability is the question.

HLT generates stronger free cash flow (463M), providing more financial flexibility.

Bottom Line

CHH scores higher overall (60/100 vs 56/100), backed by strong 32.6% 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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