Choice Hotels International, Inc. (CHH) vs Hilton Worldwide Holdings Inc. (HLT)

Choice Hotels International, Inc. and Hilton Worldwide Holdings Inc. are both Lodging companies. Hilton Worldwide Holdings Inc. is the larger, with a market value of $70.3B against $4.5B — 15.5× the size. Choice Hotels International, Inc. trades at the lower P/E: 14.3× against 45.7×. Hilton Worldwide Holdings Inc. grew revenue faster over the last twelve months: 8.74% against 2.65%. Choice Hotels International, Inc. has the higher net margin (20.2% vs 12.7%) and the lower return on invested capital (12.1% vs 30.3%). Both pay a dividend; Choice Hotels International, Inc. yields more (0.89% vs 0.33%). Across the 22 metrics below, Choice Hotels International, Inc. leads on 17 and Hilton Worldwide Holdings Inc. on 5.

Valuation

Metric CHH HLT Lodging median
P/E 14.29 45.70 26.75
P/S 2.84 5.71 2.70
P/B 32.39 n/m 6.31
Price to free cash flow 28.54 38.17 14.61
EV/EBITDA 13.32 26.21 13.70
EV/Sales 4.36 6.69 3.07
Earnings yield 7.00% 2.19% 2.75%
Free cash flow yield 3.50% 2.62% 5.61%

Profitability

Metric CHH HLT Lodging median
Gross margin 93.99% 91.43% 35.16%
Operating margin 25.21% 23.35% 14.37%
Net margin 20.18% 12.69% 9.62%
Free cash flow margin 10.30% 15.53% 10.30%
Return on equity 563.53% (29.23%) 1.31%
Return on assets 11.56% 9.65% 0.53%
Return on invested capital 12.13% 30.34% 3.70%

Growth

Metric CHH HLT Lodging median
Revenue growth (TTM) 2.65% 8.74% 5.85%
EPS growth (last fiscal year) 27.42% (0.33%) —
Revenue growth, 5-year CAGR 15.58% 22.82% 16.16%
Net income growth, 5-year CAGR 37.48% 0.00% 0.00%

Health

Metric CHH HLT Lodging median
Debt to equity 14.08 (2.13) 0.00
Current ratio 0.93 0.65 0.99
Net debt to EBITDA 3.33 3.87 3.33

Dividend

Metric CHH HLT Lodging median
Dividend yield 0.89% 0.33% 1.29%
Payout ratio 0.19 0.13 0.02

Size

Metric CHH HLT Lodging median
Market cap 4.54b 70.25b 4.54b

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