Analyzing H World Group (HTHT) & Its Rivals

H World Group (NASDAQ:HTHT) is one of 382 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its rivals? We will compare H World Group to similar businesses based on the strength of its earnings, analyst recommendations, valuation, risk, dividends, profitability and institutional ownership.

Dividends

H World Group pays an annual dividend of $1.70 per share and has a dividend yield of 3.3%. H World Group pays out 74.9% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 37.4% of their earnings in the form of a dividend.

Insider and Institutional Ownership

46.4% of H World Group shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 49.4% of H World Group shares are owned by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

H World Group has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, H World Group’s rivals have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Profitability

This table compares H World Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H World Group	18.90%	41.05%	8.07%
H World Group Competitors	2.45%	-40.43%	2.13%

Valuation & Earnings

This table compares H World Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
H World Group	$3.62 billion	$726.00 million	22.44
H World Group Competitors	$3.71 billion	$250.20 million	-155.72

H World Group’s rivals have higher revenue, but lower earnings than H World Group. H World Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for H World Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H World Group	0	1	3	0	2.75
H World Group Competitors	3801	17266	25582	902	2.50

H World Group presently has a consensus target price of $61.20, suggesting a potential upside of 20.12%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.45%. Given H World Group’s rivals higher probable upside, analysts plainly believe H World Group has less favorable growth aspects than its rivals.

Summary

H World Group beats its rivals on 9 of the 15 factors compared.

H World Group Company Profile

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.