Portillo’s (NASDAQ:PTLO – Get Free Report) and Choice Hotels International (NYSE:CHH – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Insider & Institutional Ownership
98.3% of Portillo’s shares are owned by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are owned by institutional investors. 6.3% of Portillo’s shares are owned by company insiders. Comparatively, 23.9% of Choice Hotels International shares are owned by company 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.
Profitability
This table compares Portillo’s and Choice Hotels International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Portillo’s | 1.85% | 2.78% | 0.86% |
| Choice Hotels International | 12.65% | 216.71% | 10.71% |
Earnings & Valuation
This table compares Portillo’s and Choice Hotels International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Portillo’s | $732.07 million | 0.69 | $19.34 million | $0.18 | 36.89 |
| Choice Hotels International | $1.60 billion | 3.35 | $369.95 million | $4.50 | 26.37 |
Choice Hotels International has higher revenue and earnings than Portillo’s. Choice Hotels International is trading at a lower price-to-earnings ratio than Portillo’s, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Portillo’s and Choice Hotels International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Portillo’s | 1 | 8 | 2 | 0 | 2.09 |
| Choice Hotels International | 3 | 10 | 2 | 0 | 1.93 |
Portillo’s presently has a consensus price target of $6.09, indicating a potential downside of 8.23%. Choice Hotels International has a consensus price target of $115.46, indicating a potential downside of 2.72%. Given Choice Hotels International’s higher probable upside, analysts clearly believe Choice Hotels International is more favorable than Portillo’s.
Risk and Volatility
Portillo’s has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.
Summary
Choice Hotels International beats Portillo’s on 9 of the 13 factors compared between the two stocks.
About Portillo’s
Portillo’s Inc. owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms. Portillo’s Inc. was founded in 1963 and is based in Oak Brook, Illinois.
About Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.
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