Hyatt Hotels Corporation (H) vs Intercontinental Hotels Group (IHG)

Hyatt Hotels Corporation and Intercontinental Hotels Group are both Lodging companies. Intercontinental Hotels Group is the larger, with a market value of $25.6B against $17.2B — 1.5× the size. Intercontinental Hotels Group trades at the lower P/E: 29.7× against 93.0×. Intercontinental Hotels Group grew revenue faster over the last twelve months: 29.1% against 2.82%. Intercontinental Hotels Group has the higher net margin (13.4% vs 2.62%) and the lower return on invested capital (0.00% vs 4.50%). Both pay a dividend; Intercontinental Hotels Group yields more (1.08% vs 0.33%). Across the 19 metrics below, Intercontinental Hotels Group leads on 12 and Hyatt Hotels Corporation on 7.

Valuation

Metric H IHG Lodging median
P/E 92.97 29.73 30.87
P/S 2.43 n/m 3.00
P/B 4.94 n/m 7.53
Price to free cash flow 9.47 n/m 15.79
EV/EBITDA 22.57 1.86 15.56
EV/Sales 2.99 0.42 3.54
Earnings yield 1.08% 3.36% 2.77%
Free cash flow yield 10.56% 0.00% 5.70%

Profitability

Metric H IHG Lodging median
Gross margin 19.52% 20.69% 37.02%
Operating margin 7.54% 0.00% 15.95%
Net margin 2.62% 13.44% 11.14%
Free cash flow margin 25.70% 0.00% 9.93%
Return on equity 5.09% 0.00% 3.20%
Return on assets 1.26% 0.00% 3.11%
Return on invested capital 4.50% 0.00% 6.46%

Growth

Metric H IHG Lodging median
Revenue growth (TTM) 2.82% 29.07% 6.96%
EPS growth (last fiscal year) (104.35%) 26.49% 24.99%
Revenue growth, 5-year CAGR 28.01% 16.73% 18.28%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric H IHG Lodging median
Debt to equity 1.26 (1.39) 0.09
Current ratio 0.63 0.66 1.03
Net debt to EBITDA 4.44 2.29 3.33

Dividend

Metric H IHG Lodging median
Dividend yield 0.33% 1.08% 0.83%
Payout ratio 0.31 — 0.30

Size

Metric H IHG Lodging median
Market cap 17.16b 25.63b 5.62b

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