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 $82.3B against $5.2B — 15.7× the size. Choice Hotels International, Inc. trades at the lower P/E: 25.9× against 49.4×. Hilton Worldwide Holdings Inc. grew revenue faster over the last twelve months: 8.14% against 2.09%. Hilton Worldwide Holdings Inc. has the higher net margin (13.4% vs 12.6%) and the higher return on invested capital (31.9% vs 10.9%). Both pay a dividend; Choice Hotels International, Inc. yields more (0.98% vs 0.16%). Across the 22 metrics below, Choice Hotels International, Inc. leads on 12 and Hilton Worldwide Holdings Inc. on 10.

Valuation

Metric CHH HLT Lodging median
P/E 25.90 49.36 30.87
P/S 3.22 6.51 3.00
P/B 39.89 n/m 7.53
Price to free cash flow 49.82 46.55 15.79
EV/EBITDA 15.56 28.60 15.56
EV/Sales 4.76 7.50 3.54
Earnings yield 3.86% 2.03% 2.77%
Free cash flow yield 2.01% 2.15% 5.70%

Profitability

Metric CHH HLT Lodging median
Gross margin 93.81% 91.62% 37.02%
Operating margin 22.83% 24.01% 15.95%
Net margin 12.60% 13.40% 11.14%
Free cash flow margin 6.80% 14.55% 9.93%
Return on equity 145.84% (29.65%) 3.20%
Return on assets 6.79% 10.17% 3.11%
Return on invested capital 10.88% 31.93% 6.46%

Growth

Metric CHH HLT Lodging median
Revenue growth (TTM) 2.09% 8.14% 6.96%
EPS growth (last fiscal year) 27.42% (0.33%) 24.99%
Revenue growth, 5-year CAGR 15.58% 22.82% 18.28%
Net income growth, 5-year CAGR 37.48% 0.00% 0.00%

Health

Metric CHH HLT Lodging median
Debt to equity 16.52 (2.04) 0.09
Current ratio 1.26 0.59 1.03
Net debt to EBITDA 3.33 3.87 3.33

Dividend

Metric CHH HLT Lodging median
Dividend yield 0.98% 0.16% 0.83%
Payout ratio 0.26 0.08 0.30

Size

Metric CHH HLT Lodging median
Market cap 5.24b 82.25b 5.62b

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