Critical Comparison: Belmond (BEL) vs. Choice Hotels International (NYSE:CHH)
Belmond (NYSE: BEL) and Choice Hotels International (NYSE:CHH) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitabiliy and risk.
This table compares Belmond and Choice Hotels International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Choice Hotels International||16.05%||-45.12%||17.22%|
This is a breakdown of recent ratings and recommmendations for Belmond and Choice Hotels International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Choice Hotels International||1||3||1||0||2.00|
Belmond presently has a consensus target price of $14.50, suggesting a potential upside of 9.43%. Choice Hotels International has a consensus target price of $58.75, suggesting a potential downside of 8.70%. Given Belmond’s stronger consensus rating and higher possible upside, equities analysts clearly believe Belmond is more favorable than Choice Hotels International.
Choice Hotels International pays an annual dividend of $0.86 per share and has a dividend yield of 1.3%. Belmond does not pay a dividend. Choice Hotels International pays out 33.2% of its earnings in the form of a dividend. Belmond has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
75.5% of Belmond shares are held by institutional investors. Comparatively, 49.8% of Choice Hotels International shares are held by institutional investors. 87.6% of Belmond shares are held by insiders. Comparatively, 22.0% of Choice Hotels International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Belmond has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.
Valuation & Earnings
This table compares Belmond and Choice Hotels International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Belmond||$547.78 million||2.47||$102.94 million||$0.20||66.25|
|Choice Hotels International||$915.42 million||3.94||$272.73 million||$2.59||24.85|
Choice Hotels International has higher revenue and earnings than Belmond. Choice Hotels International is trading at a lower price-to-earnings ratio than Belmond, indicating that it is currently the more affordable of the two stocks.
Belmond beats Choice Hotels International on 9 of the 17 factors compared between the two stocks.
Belmond Company Profile
Belmond Ltd. (Belmond) is a hotel company and adventure travel operator. As of December 31, 2016, Belmond owned, partially-owned and/or operated 45 properties, consisting of 34 individual deluxe hotels, 29 of which are owned (including nine under long-term lease), five European tourist trains, two cruise ships in Myanmar (one of which is under long-term charter), one French canal cruise business consisting of five small canal boats, and one stand-alone restaurant in the United States. It operates through six segments: owned hotels in Europe, owned hotels in North America (including one stand-alone restaurant), owned hotels in Rest of world, owned trains and cruises, part-owned/managed hotels and part-owned/managed trains. As of December 31, 2016, Belmond’s around the world portfolio of hotels in operation consisted of 3,272 individual guest rooms and multiple-room suites (keys).
Choice Hotels International Company Profile
Choice Hotels International, Inc. is a hotel franchisor. The Company’s segments include Hotel Franchising, SkyTouch Technology and Corporate & Other. It franchises lodging properties under brand names, including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria hotels & suites, and Ascend Hotel Collection. The Company had 6,514 hotels open and 775 hotels under construction, awaiting conversion or approved for development, as of December 31, 2016, representing 516,122 rooms open and 62,547 rooms under construction, awaiting conversion or approved for development in 50 states, the District of Columbia and over 40 countries and territories outside the United States. Its domestic franchising operations are conducted through direct franchising relationships, while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships.
Receive News & Ratings for Belmond Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Belmond Ltd. and related companies with MarketBeat.com's FREE daily email newsletter.