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 1671% more annual revenue ($25.31B vs $1.43B). HTHT leads profitability with a 20.1% profit margin vs 13.5%. 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

WH

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 7.5Value: 7.3Quality: 3.8
Piotroski: 3/9Altman Z: 0.98
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
WHSignificantly Overvalued (-106.0%)

Margin of Safety

-106.0%

Fair Value

$38.60

Current Price

$79.19

$40.59 premium

UndervaluedFair: $38.60Overvalued

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

WH2 strengths · Avg: 9.0/10
Return on EquityProfitability
34.5%10/10

Every $100 of equity generates 35 in profit

PEG RatioValuation
0.588/10

Growing faster than its price suggests

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

WH4 concerns · Avg: 3.3/10
P/E RatioValuation
31.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.8x4/10

Trading at 12.8x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

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 : WH

The strongest argument for WH centers on Return on Equity, PEG Ratio. PEG of 0.58 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 : WH

The primary concerns for WH are P/E Ratio, Price/Book, Piotroski F-Score.

Key Dynamics to Monitor

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

WH carries more volatility with a beta of 0.72 — 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 56/100), 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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