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

Choice Hotels International, Inc. and Wyndham Hotels & Resorts are both Lodging companies. Wyndham Hotels & Resorts is the larger, with a market value of $5.1B against $4.5B — 1.1× the size. Choice Hotels International, Inc. trades at the lower P/E: 14.3× against 25.5×. Choice Hotels International, Inc. grew revenue faster over the last twelve months: 2.65% against −2.14%. Choice Hotels International, Inc. has the higher net margin (20.2% vs 14.7%) and the higher return on invested capital (12.1% vs 8.67%). Both pay a dividend; Wyndham Hotels & Resorts yields more (1.77% vs 0.89%). 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 14.29 25.54 26.75
P/S 2.84 3.70 2.70
P/B 32.39 10.94 6.31
Price to free cash flow 28.54 16.25 14.61
EV/EBITDA 13.32 16.03 13.70
EV/Sales 4.36 5.54 3.07
Earnings yield 7.00% 3.91% 2.75%
Free cash flow yield 3.50% 6.15% 5.61%

Profitability

Metric CHH WH Lodging median
Gross margin 93.99% 87.66% 35.16%
Operating margin 25.21% 30.18% 14.37%
Net margin 20.18% 14.67% 9.62%
Free cash flow margin 10.30% 22.78% 10.30%
Return on equity 563.53% 39.62% 1.31%
Return on assets 11.56% 4.82% 0.53%
Return on invested capital 12.13% 8.67% 3.70%

Growth

Metric CHH WH Lodging median
Revenue growth (TTM) 2.65% (2.14%) 5.85%
EPS growth (last fiscal year) 27.42% (30.75%) —
Revenue growth, 5-year CAGR 15.58% 1.91% 16.16%
Net income growth, 5-year CAGR 37.48% 0.00% 0.00%

Health

Metric CHH WH Lodging median
Debt to equity 14.08 5.57 0.00
Current ratio 0.93 0.99 0.99
Net debt to EBITDA 3.33 5.38 3.33

Dividend

Metric CHH WH Lodging median
Dividend yield 0.89% 1.77% 1.29%
Payout ratio 0.19 0.40 0.02

Size

Metric CHH WH Lodging median
Market cap 4.54b 5.14b 4.54b

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