Choice Hotels International Inc (CHH)vsSea Ltd (SE)
CHH
Choice Hotels International Inc
$110.02
+0.76%
CONSUMER CYCLICAL · Cap: $4.93B
SE
Sea Ltd
$75.18
+0.60%
CONSUMER CYCLICAL · Cap: $57.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Sea Ltd generates 2655% more annual revenue ($27.72B vs $1.01B). CHH leads profitability with a 32.6% profit margin vs 5.9%. SE appears more attractively valued with a PEG of 0.99. SE earns a higher WallStSmart Score of 60/100 (C+).
CHH
Buy60
out of 100
Grade: C+
SE
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-68.8%
Fair Value
$64.59
Current Price
$110.02
$45.43 premium
Margin of Safety
+55.2%
Fair Value
$255.67
Current Price
$75.18
$180.49 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 252 in profit
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 37.7%
Attractively priced relative to earnings
Revenue surging 48.1% year-over-year
Large-cap with strong market position
Growing faster than its price suggests
Generating 1.1B in free cash flow
Areas to Watch
Expensive relative to growth rate
Trading at 34.6x book value
Earnings declined 19.4%
Elevated debt levels
Premium valuation, high expectations priced in
Distress zone — elevated risk
5.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 : SE
The strongest argument for SE centers on Revenue Growth, Market Cap, PEG Ratio. Revenue growth of 48.1% demonstrates continued momentum. PEG of 0.99 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 : SE
The primary concerns for SE are P/E Ratio, Altman Z-Score, Profit Margin.
Key Dynamics to Monitor
CHH profiles as a mature stock while SE is a hypergrowth play — different risk/reward profiles.
SE carries more volatility with a beta of 1.55 — expect wider price swings.
SE is growing revenue faster at 48.1% — sustainability is the question.
SE generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CHH scores higher overall (60/100 vs 60/100), backed by strong 32.6% margins. SE offers better value entry with a 55.2% margin of safety. 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.
Visit Website →Sea Ltd
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.
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