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CHH vs IHG
Revenue, margins, valuation, and 5-year total return — side by side.
Travel Lodging
CHH vs IHG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Travel Lodging | Travel Lodging |
| Market Cap | $4.87B | $22.11B |
| Revenue (TTM) | $1.60B | $10.13B |
| Net Income (TTM) | $346M | $1.39B |
| Gross Margin | 44.5% | 45.7% |
| Operating Margin | 27.0% | 22.3% |
| Forward P/E | 15.0x | 26.0x |
| Total Debt | $2.13B | $4.62B |
| Cash & Equiv. | $45M | $1.13B |
CHH vs IHG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Choice Hotels Inter… (CHH) | 100 | 131.8 | +31.8% |
| InterContinental Ho… (IHG) | 100 | 307.1 | +207.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: CHH vs IHG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
CHH is the clearest fit if your priority is sleep-well-at-night.
- Lower volatility, beta 0.62, current ratio 0.87x
- Lower P/E (15.0x vs 26.0x)
- 21.5% margin vs IHG's 13.7%
IHG carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 3 yrs, beta 0.94, yield 1.2%
- Rev growth 5.4%, EPS growth 26.5%, 3Y rev CAGR 10.1%
- 275.4% 10Y total return vs CHH's 141.9%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 5.4% revenue growth vs CHH's 0.8% | |
| Value | Lower P/E (15.0x vs 26.0x) | |
| Quality / Margins | 21.5% margin vs IHG's 13.7% | |
| Stability / Safety | Beta 0.62 vs IHG's 0.94 | |
| Dividends | 1.2% yield, 3-year raise streak, vs CHH's 1.1% | |
| Momentum (1Y) | +29.0% vs CHH's -14.4% | |
| Efficiency (ROA) | 26.0% ROA vs CHH's 12.1%, ROIC 159.6% vs 16.7% |
CHH vs IHG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
CHH vs IHG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — CHH and IHG each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
IHG is the larger business by revenue, generating $10.1B annually — 6.3x CHH's $1.6B. CHH is the more profitable business, keeping 21.5% of every revenue dollar as net income compared to IHG's 13.7%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.6B | $10.1B |
| EBITDAEarnings before interest/tax | $533M | $2.4B |
| Net IncomeAfter-tax profit | $346M | $1.4B |
| Free Cash FlowCash after capex | $263M | $1.6B |
| Gross MarginGross profit ÷ Revenue | +44.5% | +45.7% |
| Operating MarginEBIT ÷ Revenue | +27.0% | +22.3% |
| Net MarginNet income ÷ Revenue | +21.5% | +13.7% |
| FCF MarginFCF ÷ Revenue | +16.4% | +15.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.3% | +2.7% |
| EPS Growth (YoY)Latest quarter vs prior year | -53.2% | +8.0% |
Valuation Metrics
CHH leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 13.5x trailing earnings, CHH trades at a 55% valuation discount to IHG's 30.2x P/E. On an enterprise value basis, CHH's 12.3x EV/EBITDA is more attractive than IHG's 19.1x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $4.9B | $22.1B |
| Enterprise ValueMkt cap + debt − cash | $7.0B | $25.6B |
| Trailing P/EPrice ÷ TTM EPS | 13.48x | 30.17x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.98x | 25.95x |
| PEG RatioP/E ÷ EPS growth rate | 0.32x | — |
| EV / EBITDAEnterprise value multiple | 12.33x | 19.05x |
| Price / SalesMarket cap ÷ Revenue | 3.05x | 4.26x |
| Price / BookPrice ÷ Book value/share | 27.38x | — |
| Price / FCFMarket cap ÷ FCF | 39.10x | 25.42x |
Profitability & Efficiency
IHG leads this category, winning 5 of 7 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), IHG scores 7/9 vs CHH's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +3.1% | — |
| ROA (TTM)Return on assets | +12.1% | +26.0% |
| ROICReturn on invested capital | +16.7% | +159.6% |
| ROCEReturn on capital employed | +20.1% | +39.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 11.76x | — |
| Net DebtTotal debt minus cash | $2.1B | $3.5B |
| Cash & Equiv.Liquid assets | $45M | $1.1B |
| Total DebtShort + long-term debt | $2.1B | $4.6B |
| Interest CoverageEBIT ÷ Interest expense | 5.55x | 17.19x |
Total Returns (Dividends Reinvested)
IHG leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in IHG five years ago would be worth $21,464 today (with dividends reinvested), compared to $9,703 for CHH. Over the past 12 months, IHG leads with a +29.0% total return vs CHH's -14.4%. The 3-year compound annual growth rate (CAGR) favors IHG at 29.9% vs CHH's -5.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +11.4% | +5.6% |
| 1-Year ReturnPast 12 months | -14.4% | +29.0% |
| 3-Year ReturnCumulative with dividends | -15.3% | +119.1% |
| 5-Year ReturnCumulative with dividends | -3.0% | +114.6% |
| 10-Year ReturnCumulative with dividends | +141.9% | +275.4% |
| CAGR (3Y)Annualised 3-year return | -5.4% | +29.9% |
Risk & Volatility
Evenly matched — CHH and IHG each lead in 1 of 2 comparable metrics.
Risk & Volatility
CHH is the less volatile stock with a 0.62 beta — it tends to amplify market swings less than IHG's 0.94 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. IHG currently trades 97.4% from its 52-week high vs CHH's 78.1% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.62x | 0.94x |
| 52-Week HighHighest price in past year | $136.45 | $150.89 |
| 52-Week LowLowest price in past year | $84.04 | $109.79 |
| % of 52W HighCurrent price vs 52-week peak | +78.1% | +97.4% |
| RSI (14)Momentum oscillator 0–100 | 44.4 | 57.2 |
| Avg Volume (50D)Average daily shares traded | 599K | 245K |
Analyst Outlook
IHG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates CHH as "Hold" and IHG as "Buy". Consensus price targets imply 2.7% upside for CHH (target: $109) vs 2.5% for IHG (target: $151). For income investors, IHG offers the higher dividend yield at 1.18% vs CHH's 1.08%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $109.38 | $150.67 |
| # AnalystsCovering analysts | 28 | 23 |
| Dividend YieldAnnual dividend ÷ price | +1.1% | +1.2% |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | $1.15 | $1.73 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.8% | +4.1% |
IHG leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). CHH leads in 1 (Valuation Metrics). 2 tied.
CHH vs IHG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is CHH or IHG a better buy right now?
For growth investors, InterContinental Hotels Group PLC (IHG) is the stronger pick with 5.
4% revenue growth year-over-year, versus 0. 8% for Choice Hotels International, Inc. (CHH). Choice Hotels International, Inc. (CHH) offers the better valuation at 13. 5x trailing P/E (15. 0x forward), making it the more compelling value choice. Analysts rate InterContinental Hotels Group PLC (IHG) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — CHH or IHG?
On trailing P/E, Choice Hotels International, Inc.
(CHH) is the cheapest at 13. 5x versus InterContinental Hotels Group PLC at 30. 2x. On forward P/E, Choice Hotels International, Inc. is actually cheaper at 15. 0x.
03Which is the better long-term investment — CHH or IHG?
Over the past 5 years, InterContinental Hotels Group PLC (IHG) delivered a total return of +114.
6%, compared to -3. 0% for Choice Hotels International, Inc. (CHH). Over 10 years, the gap is even starker: IHG returned +275. 4% versus CHH's +141. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — CHH or IHG?
By beta (market sensitivity over 5 years), Choice Hotels International, Inc.
(CHH) is the lower-risk stock at 0. 62β versus InterContinental Hotels Group PLC's 0. 94β — meaning IHG is approximately 51% more volatile than CHH relative to the S&P 500.
05Which is growing faster — CHH or IHG?
By revenue growth (latest reported year), InterContinental Hotels Group PLC (IHG) is pulling ahead at 5.
4% versus 0. 8% for Choice Hotels International, Inc. (CHH). On earnings-per-share growth, the picture is similar: Choice Hotels International, Inc. grew EPS 27. 4% year-over-year, compared to 26. 5% for InterContinental Hotels Group PLC. Over a 3-year CAGR, IHG leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — CHH or IHG?
Choice Hotels International, Inc.
(CHH) is the more profitable company, earning 23. 2% net margin versus 14. 6% for InterContinental Hotels Group PLC — meaning it keeps 23. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CHH leads at 28. 4% versus 23. 1% for IHG. At the gross margin level — before operating expenses — CHH leads at 40. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is CHH or IHG more undervalued right now?
On forward earnings alone, Choice Hotels International, Inc.
(CHH) trades at 15. 0x forward P/E versus 26. 0x for InterContinental Hotels Group PLC — 11. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CHH: 2. 7% to $109. 38.
08Which pays a better dividend — CHH or IHG?
All stocks in this comparison pay dividends.
InterContinental Hotels Group PLC (IHG) offers the highest yield at 1. 2%, versus 1. 1% for Choice Hotels International, Inc. (CHH).
09Is CHH or IHG better for a retirement portfolio?
For long-horizon retirement investors, Choice Hotels International, Inc.
(CHH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 62), 1. 1% yield, +141. 9% 10Y return). Both have compounded well over 10 years (CHH: +141. 9%, IHG: +275. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between CHH and IHG?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: CHH is a small-cap deep-value stock; IHG is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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