Hyatt Hotels Corporation (NYSE: H) and China Lodging Group, Limited (NASDAQ:HTHT) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitabiliy.
This table compares Hyatt Hotels Corporation and China Lodging Group, Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hyatt Hotels Corporation||5.71%||6.78%||3.36%|
|China Lodging Group, Limited||13.29%||16.80%||9.09%|
Insider & Institutional Ownership
31.1% of Hyatt Hotels Corporation shares are held by institutional investors. Comparatively, 44.9% of China Lodging Group, Limited shares are held by institutional investors. 25.5% of Hyatt Hotels Corporation shares are held by insiders. Comparatively, 49.4% of China Lodging Group, Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Hyatt Hotels Corporation and China Lodging Group, Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hyatt Hotels Corporation||$2.72 billion||0.81||$671.00 million||$2.00||28.26|
|China Lodging Group, Limited||$996.83 million||7.05||$265.64 million||$1.84||54.89|
Hyatt Hotels Corporation has higher revenue and earnings than China Lodging Group, Limited. Hyatt Hotels Corporation is trading at a lower price-to-earnings ratio than China Lodging Group, Limited, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Hyatt Hotels Corporation has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, China Lodging Group, Limited has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Hyatt Hotels Corporation and China Lodging Group, Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hyatt Hotels Corporation||0||10||2||0||2.17|
|China Lodging Group, Limited||0||2||5||0||2.71|
Hyatt Hotels Corporation presently has a consensus price target of $56.63, indicating a potential upside of 0.19%. China Lodging Group, Limited has a consensus price target of $64.67, indicating a potential downside of 35.97%. Given Hyatt Hotels Corporation’s higher probable upside, research analysts clearly believe Hyatt Hotels Corporation is more favorable than China Lodging Group, Limited.
China Lodging Group, Limited beats Hyatt Hotels Corporation on 10 of the 14 factors compared between the two stocks.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation is a global hospitality company. The Company develops, owns, operates, manages, franchises, licenses or provides services to a portfolio of properties. The Company operates through four segments: owned and leased hotels; Americas management and franchising (Americas); ASPAC management and franchising (ASPAC), and EAME/SW Asia management and franchising (EAME/SW Asia). The owned and leased hotels segment consists of its owned and leased full service and select service hotels. The Americas segment consists of its management and franchising of properties located in the United States, Latin America, Canada and the Caribbean. The ASPAC segment consists of its management and franchising of properties located in Southeast Asia, as well as China, Australia, South Korea, Japan and Micronesia. The EAME/SW Asia segment consists of its management and franchising of properties located in Europe, Africa, the Middle East, India, Central Asia and Nepal.
About China Lodging Group, Limited
China Lodging Group, Limited is a holding company. The Company is a multi-brand hotel group in China with leased, manachised and franchised models. Under the lease model, the Company directly operates hotels located on leased properties. Under the manachise model, the Company manages manachised hotels through the on-site hotel managers the Company appoints and collects fees from franchisees. Under the franchise model, the Company provides training, reservation and support services to the franchised hotels and collects fees from franchisees. The Company has approximately 620 leased hotels; over 2,070 manachised hotels and approximately 80 franchised hotels in operation and over 20 leased hotels and approximately 660 manachised and franchised hotels under development. The Company offers approximately seven hotel brands that focus on various segments of customers: Joya Hotel, Manxin Hotels & Resorts, JI Hotel, Starway Hotel, Elan Hotel, HanTing Hotel and Hi Inn.
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