WallStSmart

Choice Hotels International Inc (CHH)vsHuazhu Group Ltd (HTHT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 2523% more annual revenue ($25.91B vs $987.82M). CHH leads profitability with a 35.0% profit margin vs 19.3%. HTHT appears more attractively valued with a PEG of 0.27. HTHT earns a higher WallStSmart Score of 70/100 (B-).

CHH

Buy

54

out of 100

Grade: C-

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

HTHT

Strong Buy

70

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 7.0Quality: 3.0
Piotroski: 4/9Altman Z: 0.90
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 HTHT.

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%

HTHT3 strengths · Avg: 9.3/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
45.7%10/10

Every $100 of equity generates 46 in profit

Operating MarginProfitability
24.8%8/10

Strong operational efficiency at 24.8%

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%

HTHT4 concerns · Avg: 2.3/10
Price/BookValuation
8.6x4/10

Trading at 8.6x book value

EPS GrowthGrowth
-7.1%2/10

Earnings declined 7.1%

Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

Debt/EquityHealth
3.271/10

Elevated debt levels

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 : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 19.3% and operating margin at 24.8%. Revenue growth of 11.1% 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 : HTHT

The primary concerns for HTHT are Price/Book, EPS Growth, Altman Z-Score. Debt-to-equity of 3.27 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CHH carries more volatility with a beta of 0.68 — expect wider price swings.

HTHT is growing revenue faster at 11.1% — sustainability is the question.

HTHT generates stronger free cash flow (51M), providing more financial flexibility.

Bottom Line

HTHT scores higher overall (70/100 vs 54/100), backed by strong 19.3% margins and 11.1% revenue growth. Both earn "Strong 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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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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