Comparing GreenTree Hospitality Group (NYSE:GHG) & Chagee (NASDAQ:CHA)

Chagee (NASDAQ:CHA) and GreenTree Hospitality Group (NYSE:GHG) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Chagee and GreenTree Hospitality Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chagee	10.23%	16.43%	11.39%
GreenTree Hospitality Group	4.14%	2.49%	0.84%

Valuation and Earnings

This table compares Chagee and GreenTree Hospitality Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chagee	$1.85 billion	1.34	$167.47 million	$1.01	13.38
GreenTree Hospitality Group	$156.92 million	0.66	$23.85 million	$0.05	20.60

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Chagee and GreenTree Hospitality Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chagee	1	3	3	0	2.29
GreenTree Hospitality Group	1	0	0	0	1.00

Chagee presently has a consensus price target of $14.00, indicating a potential upside of 3.63%. Given Chagee’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chagee is more favorable than GreenTree Hospitality Group.

Volatility & Risk

Chagee has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, GreenTree Hospitality Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

8.1% of GreenTree Hospitality Group shares are owned by institutional investors. 88.7% of GreenTree Hospitality Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Chagee beats GreenTree Hospitality Group on 11 of the 14 factors compared between the two stocks.

About Chagee

Chagee, also known as 霸王茶姬, is a China-based tea beverage company that develops and sells freshly prepared drinks made with tea. Its menu includes tea lattes and other milk tea and fruit tea beverages, with an emphasis on brewed tea and tea-forward flavors. Founded in 2017 by Zhang Junjie, who serves as the company’s chairman and chief executive officer, Chagee operates a network of branded teahouses. The company serves customers primarily in China and has expanded into selected Southeast Asian markets.

About GreenTree Hospitality Group

GreenTree Hospitality Group Ltd. is a China-based hotel management and franchising company. It develops and operates a portfolio of lodging brands serving business and leisure travelers, with offerings spanning economy, midscale and selected upscale hotel segments. The company’s brand portfolio has included GreenTree Inn, GreenTree Alliance, Vatica, GME, Gya, Shell and other hospitality concepts. Its services generally include hotel franchising and management, reservation and membership platforms, marketing support, operating standards, technology systems, and assistance with procurement and other hotel-related functions.