Head-To-Head Contrast: Choice Hotels International (CHH) vs. Its Rivals

Choice Hotels International (NYSE:CHH) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it weigh in compared to its rivals? We will compare Choice Hotels International to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Profitability

This table compares Choice Hotels International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choice Hotels International	12.65%	216.71%	10.71%
Choice Hotels International Competitors	2.45%	-40.43%	2.13%

Analyst Ratings

This is a summary of recent ratings and target prices for Choice Hotels International and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choice Hotels International	3	10	2	0	1.93
Choice Hotels International Competitors	3801	17266	25577	902	2.50

Choice Hotels International presently has a consensus target price of $115.79, indicating a potential downside of 2.96%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.49%. Given Choice Hotels International’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Choice Hotels International has less favorable growth aspects than its rivals.

Dividends

Choice Hotels International pays an annual dividend of $1.15 per share and has a dividend yield of 1.0%. Choice Hotels International pays out 25.6% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.4% of their earnings in the form of a dividend.

Risk and Volatility

Choice Hotels International has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Choice Hotels International’s rivals have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Insider and Institutional Ownership

65.6% of Choice Hotels International shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 23.9% of Choice Hotels International shares are owned by insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Choice Hotels International and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Choice Hotels International	$1.63 billion	$369.95 million	26.52
Choice Hotels International Competitors	$3.71 billion	$250.20 million	-155.57

Choice Hotels International’s rivals have higher revenue, but lower earnings than Choice Hotels International. Choice Hotels International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Choice Hotels International beats its rivals on 8 of the 15 factors compared.

About Choice Hotels International

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.