Belmond (NYSE: BEL) and Choice Hotels International (NYSE:CHH) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitabiliy.
Earnings & Valuation
This table compares Belmond and Choice Hotels International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Belmond||$547.78 million||2.46||$102.94 million||$0.20||66.00|
|Choice Hotels International||$915.42 million||3.97||$272.73 million||$2.59||25.06|
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.
Volatility & Risk
Belmond has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Insider and Institutional Ownership
75.5% of Belmond shares are owned by institutional investors. Comparatively, 49.8% of Choice Hotels International shares are owned by institutional investors. 87.6% of Belmond shares are owned by insiders. Comparatively, 22.0% of Choice Hotels International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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 raised its dividend for 3 consecutive years.
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 summary of recent ratings for Belmond and Choice Hotels International, as reported 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 price target of $14.50, suggesting a potential upside of 9.85%. Choice Hotels International has a consensus price target of $58.75, suggesting a potential downside of 9.48%. Given Belmond’s stronger consensus rating and higher probable upside, analysts plainly believe Belmond is more favorable than Choice Hotels International.
Belmond beats Choice Hotels International on 9 of the 17 factors compared between the two stocks.
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).
About Choice Hotels International
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.
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