WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Marriott International Inc generates 634% more annual revenue ($7.38B vs $1.01B). MAR leads profitability with a 35.0% profit margin vs 32.6%. MAR appears more attractively valued with a PEG of 1.65. 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

MAR

Buy

57

out of 100

Grade: C

Growth: 5.3Profit: 8.5Value: 4.3Quality: 6.5
Piotroski: 5/9Altman Z: 2.18
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 MAR.

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

MAR4 strengths · Avg: 9.8/10
Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
65.3%10/10

Strong operational efficiency at 65.3%

Debt/EquityHealth
-3.9310/10

Conservative balance sheet, low leverage

Market CapQuality
$87.28B9/10

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

MAR3 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
34.0x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
4.3%4/10

4.3% 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 32.6% and operating margin at 37.7%.

Bull Case : MAR

The strongest argument for MAR centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 35.0% and operating margin at 65.3%. Revenue growth of 11.1% demonstrates continued momentum.

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 : MAR

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

Key Dynamics to Monitor

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

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

MAR generates stronger free cash flow (796M), providing more financial flexibility.

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

Bottom Line

CHH scores higher overall (60/100 vs 57/100), 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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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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