Critical Review: Marriott International (MAR) versus China Lodging Group, Limited (HTHT)
Marriott International (NASDAQ: MAR) and China Lodging Group, Limited (NASDAQ:HTHT) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Marriott International and China Lodging Group, Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marriott International||$4.57 billion||8.24||$2.54 billion||$2.90||34.28|
|China Lodging Group, Limited||$996.83 million||6.94||$265.64 million||$1.84||54.00|
Marriott International has higher revenue and earnings than China Lodging Group, Limited. Marriott International 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.
Insider and Institutional Ownership
67.1% of Marriott International shares are owned by institutional investors. Comparatively, 44.9% of China Lodging Group, Limited shares are owned by institutional investors. 17.1% of Marriott International shares are owned by company insiders. Comparatively, 49.4% of China Lodging Group, Limited shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Marriott International and China Lodging Group, Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Lodging Group, Limited||13.29%||16.80%||9.09%|
This is a breakdown of current ratings and price targets for Marriott International and China Lodging Group, Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Lodging Group, Limited||0||2||5||0||2.71|
Marriott International presently has a consensus price target of $97.27, suggesting a potential downside of 2.15%. China Lodging Group, Limited has a consensus price target of $64.67, suggesting a potential downside of 34.92%. Given Marriott International’s higher possible upside, analysts plainly believe Marriott International is more favorable than China Lodging Group, Limited.
Risk & Volatility
Marriott International has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, China Lodging Group, Limited has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Marriott International pays an annual dividend of $1.32 per share and has a dividend yield of 1.3%. China Lodging Group, Limited does not pay a dividend. Marriott International pays out 45.5% of its earnings in the form of a dividend.
Marriott International beats China Lodging Group, Limited on 9 of the 16 factors compared between the two stocks.
Marriott International Company Profile
Marriott International, Inc. (Marriott International) is a lodging company. Marriott International operates in three business segments: North American Full-Service, North American Limited-Service and International. Its North American Full-Service segment includes its Luxury and Premium brands (JW Marriott, Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels, Delta Hotels, Gaylord Hotels, and Tribute Portfolio) located in the United States and Canada. Its North American Limited-Service segment includes Select brands (Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Element Hotels and Moxy Hotels) located in the United States and Canada. Its International segment includes JW Marriott, St. Regis, EDITION, Bulgari Hotels & Resorts, Marriott Hotels, Sheraton, Westin, Four Points, Aloft Hotels, AC Hotels by Marriott, Protea Hotels, Element Hotels, and Moxy Hotels located outside the United States and Canada.
China Lodging Group, Limited Company Profile
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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