WallStSmart

Choice Hotels International Inc (CHH)vsMarriott International Inc (MAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Marriott International Inc generates 612% more annual revenue ($6.98B vs $980.59M). CHH leads profitability with a 37.7% profit margin vs 37.2%. CHH appears more attractively valued with a PEG of 1.90. 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

MAR

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 8.5Value: 7.3Quality: 5.3
Piotroski: 5/9Altman Z: 2.18
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
MARSignificantly Overvalued (-303.4%)

Margin of Safety

-303.4%

Fair Value

$88.92

Current Price

$326.79

$237.87 premium

UndervaluedFair: $88.92Overvalued

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

MAR3 strengths · Avg: 9.7/10
Profit MarginProfitability
37.2%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
44.0%10/10

Strong operational efficiency at 44.0%

Market CapQuality
$85.93B9/10

Large-cap with strong market position

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%

MAR3 concerns · Avg: 4.0/10
PEG RatioValuation
1.944/10

Expensive relative to growth rate

P/E RatioValuation
34.1x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
1.6%4/10

1.6% earnings growth

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 : MAR

The strongest argument for MAR centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 37.2% and operating margin at 44.0%.

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 : MAR

The primary concerns for MAR are PEG Ratio, P/E Ratio, EPS Growth.

Key Dynamics to Monitor

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

MAR carries more volatility with a beta of 1.10 — expect wider price swings.

MAR is growing revenue faster at 6.3% — sustainability is the question.

MAR generates stronger free cash flow (657M), providing more financial flexibility.

Bottom Line

CHH scores higher overall (58/100 vs 55/100), 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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Marriott International Inc

CONSUMER CYCLICAL · LODGING · USA

Marriott International, Inc. is an American multinational company that operates, franchises, and licenses lodging including hotel, residential, and timeshare properties. It is headquartered in Bethesda, Maryland.

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