Head-To-Head Contrast: Choice Hotels International (NYSE:CHH) & Studio City International (NYSE:MSC)

Choice Hotels International (NYSE:CHH) and Studio City International (NYSE:MSC) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Institutional & Insider Ownership

60.3% of Choice Hotels International shares are owned by institutional investors. Comparatively, 22.1% of Studio City International shares are owned by institutional investors. 24.9% of Choice Hotels International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Choice Hotels International and Studio City International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Choice Hotels International 20.13% -141.56% 19.93%
Studio City International -1.62% 0.84% 0.29%

Dividends

Choice Hotels International pays an annual dividend of $0.86 per share and has a dividend yield of 0.9%. Studio City International does not pay a dividend. Choice Hotels International pays out 22.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Choice Hotels International and Studio City International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Choice Hotels International $1.04 billion 4.99 $216.35 million $3.89 23.98
Studio City International $571.21 million 2.68 -$20.75 million ($0.24) -81.25

Choice Hotels International has higher revenue and earnings than Studio City International. Studio City International is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Choice Hotels International and Studio City International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Choice Hotels International 2 6 1 0 1.89
Studio City International 2 0 0 0 1.00

Choice Hotels International presently has a consensus target price of $85.12, suggesting a potential downside of 8.77%. Studio City International has a consensus target price of $20.00, suggesting a potential upside of 2.56%. Given Studio City International’s higher probable upside, analysts clearly believe Studio City International is more favorable than Choice Hotels International.

Summary

Choice Hotels International beats Studio City International on 12 of the 15 factors compared between the two stocks.

Choice Hotels International Company Profile

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Cambria Hotels, V8 Hotel Köln @Motorworld, Quality Hotel Ostrava, Hotel Aquarius Venice, and Ascend Hotel Collection. It also develops and markets cloud-based technology products to the hotel industry. As of May 1, 2019, the company had approximately 7,000 hotels with 570,000 rooms in approximately 40 countries and territories. Choice Hotels International, Inc. was founded in 1939 and is based in Rockville, Maryland.

Studio City International Company Profile

Studio City International Holdings Ltd. is a gaming, retail and entertainment resort located in Cotai, Macau. It engages in the hospitality business and provision of gaming related services in Macau. The company was founded on August 2, 2000 and is headquartered in Hong Kong.

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