WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 1930% more annual revenue ($25.31B vs $1.25B). HTHT leads profitability with a 20.1% profit margin vs 15.3%. GHG trades at a lower P/E of 7.5x. HTHT earns a higher WallStSmart Score of 80/100 (B+).

GHG

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.5Value: 8.3Quality: 5.5
Piotroski: 3/9Altman Z: 0.70

HTHT

Strong Buy

80

out of 100

Grade: B+

Growth: 8.0Profit: 8.5Value: 10.0Quality: 3.0
Piotroski: 5/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHGUndervalued (+88.2%)

Margin of Safety

+88.2%

Fair Value

$12.17

Current Price

$1.22

$10.95 discount

UndervaluedFair: $12.17Overvalued
HTHTUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$108.58

Current Price

$49.21

$59.37 discount

UndervaluedFair: $108.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHG3 strengths · Avg: 10.0/10
P/E RatioValuation
7.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
63.5%10/10

Earnings expanding 63.5% YoY

HTHT6 strengths · Avg: 8.8/10
PEG RatioValuation
0.2710/10

Growing faster than its price suggests

Return on EquityProfitability
40.6%10/10

Every $100 of equity generates 41 in profit

Profit MarginProfitability
20.1%9/10

Keeps 20 of every $100 in revenue as profit

Operating MarginProfitability
29.1%8/10

Strong operational efficiency at 29.1%

EPS GrowthGrowth
22.3%8/10

Earnings expanding 22.3% YoY

Free Cash FlowQuality
$3.15B8/10

Generating 3.2B in free cash flow

Areas to Watch

GHG4 concerns · Avg: 2.8/10
Market CapQuality
$198.99M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.003/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-11.3%2/10

Revenue declined 11.3%

HTHT3 concerns · Avg: 2.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Debt/EquityHealth
3.131/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : GHG

The strongest argument for GHG centers on P/E Ratio, Price/Book, EPS Growth. Profitability is solid with margins at 15.3% and operating margin at 15.6%.

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, Profit Margin. Profitability is solid with margins at 20.1% and operating margin at 29.1%. PEG of 0.27 suggests the stock is reasonably priced for its growth.

Bear Case : GHG

The primary concerns for GHG are Market Cap, Debt/Equity, Piotroski F-Score.

Bear Case : HTHT

The primary concerns for HTHT are Price/Book, Altman Z-Score, Debt/Equity. Debt-to-equity of 3.13 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

GHG carries more volatility with a beta of 0.61 — expect wider price swings.

HTHT is growing revenue faster at 8.3% — sustainability is the question.

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

Bottom Line

HTHT scores higher overall (80/100 vs 58/100), backed by strong 20.1% margins. GHG offers better value entry with a 88.2% margin of safety. Both earn "Strong 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.

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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