Comparing Brinker International (NYSE:EAT) & H World Group (NASDAQ:HTHT)

Brinker International (NYSE:EAT) and H World Group (NASDAQ:HTHT) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Institutional & Insider Ownership

46.4% of H World Group shares are held by institutional investors. 1.4% of Brinker International shares are held by insiders. Comparatively, 49.4% of H World Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Brinker International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, H World Group has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Brinker International and H World Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brinker International	0	6	17	1	2.79
H World Group	0	2	3	0	2.60

Brinker International presently has a consensus price target of $243.38, indicating a potential upside of 25.43%. H World Group has a consensus price target of $61.20, indicating a potential upside of 42.95%. Given H World Group’s higher probable upside, analysts clearly believe H World Group is more favorable than Brinker International.

Profitability

This table compares Brinker International and H World Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brinker International	8.39%	122.35%	17.42%
H World Group	18.90%	41.05%	8.07%

Earnings and Valuation

This table compares Brinker International and H World Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brinker International	$5.81 billion	1.40	$487.00 million	$10.89	17.82
H World Group	$26.60 billion	0.49	$726.00 million	$2.27	18.86

H World Group has higher revenue and earnings than Brinker International. Brinker International is trading at a lower price-to-earnings ratio than H World Group, indicating that it is currently the more affordable of the two stocks.

Summary

Brinker International beats H World Group on 8 of the 15 factors compared between the two stocks.

About Brinker International

Brinker International, Inc., together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. The company also operates virtual brands, It's Just Wings. Brinker International, Inc. was founded in 1975 and is headquartered in Dallas, Texas.

About H World Group

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.