WallStSmart

GreenTree Hospitality Group Ltd (GHG)vsHuazhu Group Ltd (HTHT)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 2544% more annual revenue ($26.60B vs $1.01B). HTHT leads profitability with a 18.9% profit margin vs 3.2%. GHG trades at a lower P/E of 20.2x. HTHT earns a higher WallStSmart Score of 74/100 (B).

GHG

Hold

40

out of 100

Grade: F

Growth: 3.3Profit: 4.5Value: 7.0Quality: 5.0
Piotroski: 5/9Altman Z: 0.77

HTHT

Strong Buy

74

out of 100

Grade: B

Growth: 6.7Profit: 8.5Value: 6.3Quality: 3.5
Piotroski: 4/9Altman Z: 0.95
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHGUndervalued (+82.9%)

Margin of Safety

+82.9%

Fair Value

$8.41

Current Price

$0.94

$7.47 discount

UndervaluedFair: $8.41Overvalued

Intrinsic value data unavailable for HTHT.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHG2 strengths · Avg: 9.0/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
20.5%8/10

Strong operational efficiency at 20.5%

HTHT4 strengths · Avg: 9.5/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
35.6%10/10

Every $100 of equity generates 36 in profit

Operating MarginProfitability
31.1%10/10

Strong operational efficiency at 31.1%

Free Cash FlowQuality
$3.21B8/10

Generating 3.2B in free cash flow

Areas to Watch

GHG4 concerns · Avg: 2.5/10
Market CapQuality
$101.91M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.2%3/10

3.2% margin — thin

Return on EquityProfitability
-1.1%2/10

ROE of -1.1% — below average capital efficiency

Revenue GrowthGrowth
-18.7%2/10

Revenue declined 18.7%

HTHT4 concerns · Avg: 2.8/10
P/E RatioValuation
31.2x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Altman Z-ScoreHealth
0.952/10

Distress zone — elevated risk

Debt/EquityHealth
2.431/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GHG

The strongest argument for GHG centers on Price/Book, Operating Margin.

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 31.1%. Revenue growth of 10.8% demonstrates continued momentum.

Bear Case : GHG

The primary concerns for GHG are Market Cap, Profit Margin, Return on Equity. Thin 3.2% margins leave little buffer for downturns.

Bear Case : HTHT

The primary concerns for HTHT are P/E Ratio, EPS Growth, Altman Z-Score. Debt-to-equity of 2.43 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

GHG carries more volatility with a beta of 0.63 — expect wider price swings.

HTHT is growing revenue faster at 10.8% — sustainability is the question.

HTHT generates stronger free cash flow (3.2B), providing more financial flexibility.

Bottom Line

HTHT scores higher overall (74/100 vs 40/100), backed by strong 18.9% margins and 10.8% revenue growth. GHG offers better value entry with a 82.9% margin of safety. Both earn "Strong 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.

GreenTree Hospitality Group Ltd

CONSUMER CYCLICAL · LODGING · China

GreenTree Hospitality Group Ltd., develops and sells leased and operated, franchised and managed hotels under the GreenTree brand in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.

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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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