WallStSmart

Huazhu Group Ltd (HTHT)vsWyndham Hotels & Resorts Inc (WH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Huazhu Group Ltd generates 1657% more annual revenue ($25.31B vs $1.44B). HTHT leads profitability with a 20.1% profit margin vs 13.4%. 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: 8.7Profit: 8.5Value: 8.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.92

WH

Buy

60

out of 100

Grade: C+

Growth: 3.3Profit: 8.0Value: 4.7Quality: 3.8
Piotroski: 3/9Altman Z: 0.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HTHTUndervalued (+53.1%)

Margin of Safety

+53.1%

Fair Value

$113.56

Current Price

$47.08

$66.48 discount

UndervaluedFair: $113.56Overvalued
WHSignificantly Overvalued (-35.6%)

Margin of Safety

-35.6%

Fair Value

$58.61

Current Price

$82.67

$24.06 premium

UndervaluedFair: $58.61Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HTHT6 strengths · Avg: 9.2/10
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

EPS GrowthGrowth
2217.0%10/10

Earnings expanding 2217.0% YoY

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%

Free Cash FlowQuality
$3.15B8/10

Generating 3.2B in free cash flow

WH3 strengths · Avg: 9.3/10
Return on EquityProfitability
37.6%10/10

Every $100 of equity generates 38 in profit

Operating MarginProfitability
37.0%10/10

Strong operational efficiency at 37.0%

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Areas to Watch

HTHT2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Debt/EquityHealth
3.131/10

Elevated debt levels

WH4 concerns · Avg: 4.0/10
P/E RatioValuation
33.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.3x4/10

Trading at 13.3x book value

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

EPS GrowthGrowth
2.6%4/10

2.6% earnings growth

Comparative Analysis Report

WallStSmart Research

Bull Case : HTHT

The strongest argument for HTHT centers on PEG Ratio, Return on Equity, EPS Growth. 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 : WH

The strongest argument for WH centers on Return on Equity, Operating Margin, PEG Ratio. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bear Case : HTHT

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

Bear Case : WH

The primary concerns for WH are P/E Ratio, Price/Book, Revenue Growth.

Key Dynamics to Monitor

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

WH carries more volatility with a beta of 0.65 — 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 60/100), backed by strong 20.1% margins. 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.

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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Wyndham Hotels & Resorts Inc

CONSUMER CYCLICAL · LODGING · USA

Wyndham Hotels & Resorts, Inc. is a global hotel franchisor. The company is headquartered in Parsippany, New Jersey.

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