WallStSmart

Choice Hotels International Inc (CHH)vsInterContinental Hotels Group PLC ADR (IHG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

InterContinental Hotels Group PLC ADR generates 425% more annual revenue ($5.19B vs $987.82M). CHH leads profitability with a 35.0% profit margin vs 14.6%. IHG appears more attractively valued with a PEG of 1.57. 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

IHG

Hold

43

out of 100

Grade: D

Growth: 6.0Profit: 7.0Value: 3.3Quality: 6.0
Piotroski: 5/9Altman Z: 1.54
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
IHGSignificantly Overvalued (-83.6%)

Margin of Safety

-83.6%

Fair Value

$79.39

Current Price

$162.15

$82.76 premium

UndervaluedFair: $79.39Overvalued

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%

IHG2 strengths · Avg: 9.0/10
Debt/EquityHealth
-1.6910/10

Conservative balance sheet, low leverage

Operating MarginProfitability
22.2%8/10

Strong operational efficiency at 22.2%

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%

IHG4 concerns · Avg: 4.0/10
PEG RatioValuation
1.574/10

Expensive relative to growth rate

P/E RatioValuation
34.4x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Altman Z-ScoreHealth
1.544/10

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 : IHG

The strongest argument for IHG centers on Debt/Equity, Operating Margin.

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 : IHG

The primary concerns for IHG are PEG Ratio, P/E Ratio, Revenue Growth.

Key Dynamics to Monitor

IHG carries more volatility with a beta of 1.04 — expect wider price swings.

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

IHG generates stronger free cash flow (563M), providing more financial flexibility.

Monitor LODGING industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CHH scores higher overall (54/100 vs 43/100), 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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InterContinental Hotels Group PLC ADR

CONSUMER CYCLICAL · LODGING · USA

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company is headquartered in Denham, the United Kingdom.

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