WallStSmart

Huazhu Group Ltd (HTHT)vsInterContinental Hotels Group PLC ADR (IHG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 388% more annual revenue ($25.31B vs $5.19B). HTHT leads profitability with a 20.1% profit margin vs 14.6%. HTHT appears more attractively valued with a PEG of 0.27. HTHT earns a higher WallStSmart Score of 80/100 (B+).

HTHT

Strong Buy

80

out of 100

Grade: B+

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

IHG

Hold

49

out of 100

Grade: D+

Growth: 6.0Profit: 6.5Value: 7.3Quality: 4.8
Piotroski: 5/9Altman Z: 1.83
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTHTUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$108.58

Current Price

$49.21

$59.37 discount

UndervaluedFair: $108.58Overvalued
IHGSignificantly Overvalued (-56.5%)

Margin of Safety

-56.5%

Fair Value

$93.11

Current Price

$134.14

$41.03 premium

UndervaluedFair: $93.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

IHG2 strengths · Avg: 8.0/10
PEG RatioValuation
0.968/10

Growing faster than its price suggests

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

Areas to Watch

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

IHG4 concerns · Avg: 3.8/10
P/E RatioValuation
27.2x4/10

Moderate valuation

Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : IHG

The strongest argument for IHG centers on PEG Ratio, Operating Margin. PEG of 0.96 suggests the stock is reasonably priced for its growth.

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.

Bear Case : IHG

The primary concerns for IHG are P/E Ratio, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

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

IHG carries more volatility with a beta of 1.07 — 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 49/100), backed by strong 20.1% margins. 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.

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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InterContinental Hotels Group PLC ADR

CONSUMER CYCLICAL · LODGING · USA

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company is headquartered in Denham, the United Kingdom.

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