Choice Hotels International, Inc. (CHH) vs Intercontinental Hotels Group (IHG)

Choice Hotels International, Inc. and Intercontinental Hotels Group are both Lodging companies. Intercontinental Hotels Group is the larger, with a market value of $25.6B against $5.2B — 4.9× the size. Choice Hotels International, Inc. trades at the lower P/E: 25.9× against 29.7×. Intercontinental Hotels Group grew revenue faster over the last twelve months: 29.1% against 2.09%. Intercontinental Hotels Group has the higher net margin (13.4% vs 12.6%) and the lower return on invested capital (0.00% vs 10.9%). Both pay a dividend; Intercontinental Hotels Group yields more (1.08% vs 0.98%). Across the 20 metrics below, Choice Hotels International, Inc. leads on 12 and Intercontinental Hotels Group on 8.

Valuation

Metric CHH IHG Lodging median
P/E 25.90 29.73 30.87
P/S 3.22 n/m 3.00
P/B 39.89 n/m 7.53
Price to free cash flow 49.82 n/m 15.79
EV/EBITDA 15.56 1.86 15.56
EV/Sales 4.76 0.42 3.54
Earnings yield 3.86% 3.36% 2.77%
Free cash flow yield 2.01% 0.00% 5.70%

Profitability

Metric CHH IHG Lodging median
Gross margin 93.81% 20.69% 37.02%
Operating margin 22.83% 0.00% 15.95%
Net margin 12.60% 13.44% 11.14%
Free cash flow margin 6.80% 0.00% 9.93%
Return on equity 145.84% 0.00% 3.20%
Return on assets 6.79% 0.00% 3.11%
Return on invested capital 10.88% 0.00% 6.46%

Growth

Metric CHH IHG Lodging median
Revenue growth (TTM) 2.09% 29.07% 6.96%
EPS growth (last fiscal year) 27.42% 26.49% 24.99%
Revenue growth, 5-year CAGR 15.58% 16.73% 18.28%
Net income growth, 5-year CAGR 37.48% 0.00% 0.00%

Health

Metric CHH IHG Lodging median
Debt to equity 16.52 (1.39) 0.09
Current ratio 1.26 0.66 1.03
Net debt to EBITDA 3.33 2.29 3.33

Dividend

Metric CHH IHG Lodging median
Dividend yield 0.98% 1.08% 0.83%
Payout ratio 0.26 — 0.30

Size

Metric CHH IHG Lodging median
Market cap 5.24b 25.63b 5.62b

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