Huazhu Group (NASDAQ:HTHT) and GreenTree Hospitality Group (NYSE:GHG) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.
Risk and Volatility
Huazhu Group has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, GreenTree Hospitality Group has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.
Huazhu Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. GreenTree Hospitality Group pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Huazhu Group pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. GreenTree Hospitality Group pays out 45.9% of its earnings in the form of a dividend. GreenTree Hospitality Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and price targets for Huazhu Group and GreenTree Hospitality Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GreenTree Hospitality Group||0||1||2||0||2.67|
Huazhu Group presently has a consensus price target of $42.00, suggesting a potential upside of 20.38%. GreenTree Hospitality Group has a consensus price target of $16.53, suggesting a potential upside of 24.50%. Given GreenTree Hospitality Group’s stronger consensus rating and higher probable upside, analysts plainly believe GreenTree Hospitality Group is more favorable than Huazhu Group.
Earnings & Valuation
This table compares Huazhu Group and GreenTree Hospitality Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Huazhu Group||$1.46 billion||6.91||$104.00 million||$0.36||96.44|
|GreenTree Hospitality Group||$137.45 million||9.76||$57.32 million||$0.61||21.66|
Huazhu Group has higher revenue and earnings than GreenTree Hospitality Group. GreenTree Hospitality Group is trading at a lower price-to-earnings ratio than Huazhu Group, indicating that it is currently the more affordable of the two stocks.
This table compares Huazhu Group and GreenTree Hospitality Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GreenTree Hospitality Group||41.76%||25.30%||15.17%|
Insider & Institutional Ownership
46.8% of Huazhu Group shares are held by institutional investors. Comparatively, 9.0% of GreenTree Hospitality Group shares are held by institutional investors. 49.4% of Huazhu Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
GreenTree Hospitality Group beats Huazhu Group on 9 of the 16 factors compared between the two stocks.
About Huazhu Group
Huazhu Group Limited, together with its subsidiaries, develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers. As of September 30, 2018, it had 698 leased hotels, 3,139 manachised hotels, and 218 franchised hotels with 409,516 rooms. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was incorporated in 2007 and is headquartered in Shanghai, the People's Republic of China.
About GreenTree Hospitality Group
GreenTree Hospitality Group Ltd., through its subsidiaries, owns, operates, leases, franchises, and manages hotels in the People's Republic of China. The company operates hotels under the various brands, including GreenTree Eastern, as well as Gme, Gya, and VX; GreenTree Inns and GreenTree Alliance; and Vatica and Shell. As of March 31, 2018, it had 26 leased-and-operated hotels and 2,328 franchised-and-managed hotels with 195,552 hotel rooms in 266 cities. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China. GreenTree Hospitality Group Ltd. is a subsidiary of GreenTree Inns Hotel Management Group, Inc.
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