Choice Hotels International, Inc. (CHH) vs Wyndham Hotels & Resorts (WH)

Choice Hotels International, Inc. and Wyndham Hotels & Resorts are both Lodging companies. Choice Hotels International, Inc. and Wyndham Hotels & Resorts are of similar size ($5.7B and $5.2B). Choice Hotels International, Inc. trades at the lower P/E: 25.9× against 28.7×. Choice Hotels International, Inc. grew revenue faster over the last twelve months: 2.09% against 0.77%. Wyndham Hotels & Resorts has the higher net margin (14.0% vs 12.6%) and the lower return on invested capital (8.42% vs 10.9%). Both pay a dividend; Wyndham Hotels & Resorts yields more (2.18% vs 0.98%). Across the 23 metrics below, Choice Hotels International, Inc. leads on 15 and Wyndham Hotels & Resorts on 8.

Valuation

Metric CHH WH Lodging median
P/E 25.90 28.73 30.87
P/S 3.22 3.99 3.00
P/B 39.89 12.14 7.53
Price to free cash flow 49.82 17.48 15.79
EV/EBITDA 15.56 17.44 15.56
EV/Sales 4.76 5.83 3.54
Earnings yield 3.86% 3.48% 2.77%
Free cash flow yield 2.01% 5.72% 5.70%

Profitability

Metric CHH WH Lodging median
Gross margin 93.81% 87.90% 37.02%
Operating margin 22.83% 29.18% 15.95%
Net margin 12.60% 13.97% 11.14%
Free cash flow margin 6.80% 22.82% 9.93%
Return on equity 145.84% 38.19% 3.20%
Return on assets 6.79% 4.64% 3.11%
Return on invested capital 10.88% 8.42% 6.46%

Growth

Metric CHH WH Lodging median
Revenue growth (TTM) 2.09% 0.77% 6.96%
EPS growth (last fiscal year) 27.42% (30.75%) 24.99%
Revenue growth, 5-year CAGR 15.58% 1.91% 18.28%
Net income growth, 5-year CAGR 37.48% 0.00% 0.00%

Health

Metric CHH WH Lodging median
Debt to equity 16.52 5.74 0.09
Current ratio 1.26 1.01 1.03
Net debt to EBITDA 3.33 5.38 3.33

Dividend

Metric CHH WH Lodging median
Dividend yield 0.98% 2.18% 0.83%
Payout ratio 0.26 0.63 0.30

Size

Metric CHH WH Lodging median
Market cap 5.24b 5.67b 5.62b

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