Choice Hotels International, Inc. (CHH) vs Sonder Holdings Inc. (SONDQ)

Choice Hotels International, Inc. and Sonder Holdings Inc. are both Lodging companies. Choice Hotels International, Inc. is the larger, with a market value of $4.5B against $1.7M — 2702.4× the size. Sonder Holdings Inc. has negative trailing earnings, so its P/E is not meaningful; Choice Hotels International, Inc. trades at 14.3×. Choice Hotels International, Inc. grew revenue faster over the last twelve months: 2.65% against −5.47%. Choice Hotels International, Inc. has the higher net margin (20.2% vs −55.8%) and the higher return on invested capital (12.1% vs 0.00%). Across the 16 metrics below, Choice Hotels International, Inc. leads on 14 and Sonder Holdings Inc. on 2.

Valuation

Metric CHH SONDQ Lodging median
P/E 14.29 n/m 26.75
P/S 2.84 n/m 2.70
P/B 32.39 n/m 6.31
Price to free cash flow 28.54 n/m 14.61
EV/EBITDA 13.32 21.58 13.70
EV/Sales 4.36 0.25 3.07
Earnings yield 7.00% 0.00% 2.75%
Free cash flow yield 3.50% 0.00% 5.61%

Profitability

Metric CHH SONDQ Lodging median
Gross margin 93.99% 38.88% 35.16%
Operating margin 25.21% (26.10%) 14.37%
Net margin 20.18% (55.82%) 9.62%
Free cash flow margin 10.30% (13.90%) 10.30%
Return on equity 563.53% 59.64% 1.31%
Return on assets 11.56% (29.69%) 0.53%
Return on invested capital 12.13% 0.00% 3.70%

Growth

Metric CHH SONDQ Lodging median
Revenue growth (TTM) 2.65% (5.47%) 5.85%
EPS growth (last fiscal year) 27.42% 23.48% —
Revenue growth, 5-year CAGR 15.58% — 16.16%
Net income growth, 5-year CAGR 37.48% — 0.00%

Health

Metric CHH SONDQ Lodging median
Debt to equity 14.08 (0.31) 0.00
Current ratio 0.93 0.25 0.99
Net debt to EBITDA 3.33 16.38 3.33

Dividend

Metric CHH SONDQ Lodging median
Dividend yield 0.89% — 1.29%
Payout ratio 0.19 0.00 0.02

Size

Metric CHH SONDQ Lodging median
Market cap 4.54b 1.68m 4.54b

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