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IHG vs BKNG
Revenue, margins, valuation, and 5-year total return — side by side.
Travel Services
IHG vs BKNG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Travel Lodging | Travel Services |
| Market Cap | $22.52B | $128.63B |
| Revenue (TTM) | $10.13B | $27.69B |
| Net Income (TTM) | $1.39B | $6.15B |
| Gross Margin | 45.7% | 100.0% |
| Operating Margin | 22.3% | 34.3% |
| Forward P/E | 26.4x | 15.9x |
| Total Debt | $4.62B | $19.29B |
| Cash & Equiv. | $1.13B | $17.20B |
IHG vs BKNG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| InterContinental Ho… (IHG) | 100 | 312.7 | +212.7% |
| Booking Holdings In… (BKNG) | 100 | 253.1 | +153.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: IHG vs BKNG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
IHG is the clearest fit if your priority is income & stability and long-term compounding.
- Dividend streak 3 yrs, beta 0.96, yield 1.2%
- 281.7% 10Y total return vs BKNG's 240.1%
- 1.2% yield, 3-year raise streak, vs BKNG's 0.9%
BKNG carries the broadest edge in this set and is the clearest fit for growth exposure and sleep-well-at-night.
- Rev growth 13.4%, EPS growth -4.2%, 3Y rev CAGR 16.3%
- Lower volatility, beta 0.73, current ratio 1.33x
- Beta 0.73, yield 0.9%, current ratio 1.33x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 13.4% revenue growth vs IHG's 5.4% | |
| Value | Lower P/E (15.9x vs 26.4x) | |
| Quality / Margins | 22.2% margin vs IHG's 13.7% | |
| Stability / Safety | Beta 0.73 vs IHG's 0.96 | |
| Dividends | 1.2% yield, 3-year raise streak, vs BKNG's 0.9% | |
| Momentum (1Y) | +29.0% vs BKNG's -18.9% | |
| Efficiency (ROA) | 26.0% ROA vs BKNG's 21.1% |
IHG vs BKNG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
IHG vs BKNG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
BKNG leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
BKNG is the larger business by revenue, generating $27.7B annually — 2.7x IHG's $10.1B. BKNG is the more profitable business, keeping 22.2% of every revenue dollar as net income compared to IHG's 13.7%. On growth, BKNG holds the edge at +16.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $10.1B | $27.7B |
| EBITDAEarnings before interest/tax | $2.4B | $10.2B |
| Net IncomeAfter-tax profit | $1.4B | $6.2B |
| Free Cash FlowCash after capex | $1.6B | $9.0B |
| Gross MarginGross profit ÷ Revenue | +45.7% | +100.0% |
| Operating MarginEBIT ÷ Revenue | +22.3% | +34.3% |
| Net MarginNet income ÷ Revenue | +13.7% | +22.2% |
| FCF MarginFCF ÷ Revenue | +15.4% | +32.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | +2.7% | +16.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +8.0% | +2.4% |
Valuation Metrics
BKNG leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 25.1x trailing earnings, BKNG trades at a 18% valuation discount to IHG's 30.7x P/E. On an enterprise value basis, BKNG's 13.0x EV/EBITDA is more attractive than IHG's 19.3x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $22.5B | $128.6B |
| Enterprise ValueMkt cap + debt − cash | $26.0B | $130.7B |
| Trailing P/EPrice ÷ TTM EPS | 30.72x | 25.07x |
| Forward P/EPrice ÷ next-FY EPS est. | 26.44x | 15.86x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.16x |
| EV / EBITDAEnterprise value multiple | 19.35x | 13.01x |
| Price / SalesMarket cap ÷ Revenue | 4.34x | 4.78x |
| Price / BookPrice ÷ Book value/share | — | — |
| Price / FCFMarket cap ÷ FCF | 25.88x | 14.15x |
Profitability & Efficiency
IHG leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
On the Piotroski fundamental quality scale (0–9), IHG scores 7/9 vs BKNG's 6/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | — | — |
| ROA (TTM)Return on assets | +26.0% | +21.1% |
| ROICReturn on invested capital | +159.6% | — |
| ROCEReturn on capital employed | +39.5% | +75.4% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | — | — |
| Net DebtTotal debt minus cash | $3.5B | $2.1B |
| Cash & Equiv.Liquid assets | $1.1B | $17.2B |
| Total DebtShort + long-term debt | $4.6B | $19.3B |
| Interest CoverageEBIT ÷ Interest expense | 17.19x | 7.21x |
Total Returns (Dividends Reinvested)
IHG leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in IHG five years ago would be worth $22,438 today (with dividends reinvested), compared to $18,709 for BKNG. Over the past 12 months, IHG leads with a +29.0% total return vs BKNG's -18.9%. The 3-year compound annual growth rate (CAGR) favors IHG at 30.7% vs BKNG's 17.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +7.5% | -21.8% |
| 1-Year ReturnPast 12 months | +29.0% | -18.9% |
| 3-Year ReturnCumulative with dividends | +123.1% | +60.4% |
| 5-Year ReturnCumulative with dividends | +124.4% | +87.1% |
| 10-Year ReturnCumulative with dividends | +281.7% | +240.1% |
| CAGR (3Y)Annualised 3-year return | +30.7% | +17.1% |
Risk & Volatility
Evenly matched — IHG and BKNG each lead in 1 of 2 comparable metrics.
Risk & Volatility
BKNG is the less volatile stock with a 0.73 beta — it tends to amplify market swings less than IHG's 0.96 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. IHG currently trades 99.0% from its 52-week high vs BKNG's 3.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.96x | 0.73x |
| 52-Week HighHighest price in past year | $151.18 | $5129.83 |
| 52-Week LowLowest price in past year | $109.79 | $150.62 |
| % of 52W HighCurrent price vs 52-week peak | +99.0% | +3.2% |
| RSI (14)Momentum oscillator 0–100 | 59.1 | 46.1 |
| Avg Volume (50D)Average daily shares traded | 233K | 8.4M |
Analyst Outlook
IHG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates IHG as "Buy" and BKNG as "Buy". Consensus price targets imply 39.6% upside for BKNG (target: $232) vs 0.7% for IHG (target: $151). For income investors, IHG offers the higher dividend yield at 1.16% vs BKNG's 0.92%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $150.67 | $231.72 |
| # AnalystsCovering analysts | 23 | 71 |
| Dividend YieldAnnual dividend ÷ price | +1.2% | +0.9% |
| Dividend StreakConsecutive years of raises | 3 | 2 |
| Dividend / ShareAnnual DPS | $1.73 | $1.53 |
| Buyback YieldShare repurchases ÷ mkt cap | +4.0% | +5.0% |
IHG leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). BKNG leads in 2 (Income & Cash Flow, Valuation Metrics). 1 tied.
IHG vs BKNG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is IHG or BKNG a better buy right now?
For growth investors, Booking Holdings Inc.
(BKNG) is the stronger pick with 13. 4% revenue growth year-over-year, versus 5. 4% for InterContinental Hotels Group PLC (IHG). Booking Holdings Inc. (BKNG) offers the better valuation at 25. 1x trailing P/E (15. 9x 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 — IHG or BKNG?
On trailing P/E, Booking Holdings Inc.
(BKNG) is the cheapest at 25. 1x versus InterContinental Hotels Group PLC at 30. 7x. On forward P/E, Booking Holdings Inc. is actually cheaper at 15. 9x.
03Which is the better long-term investment — IHG or BKNG?
Over the past 5 years, InterContinental Hotels Group PLC (IHG) delivered a total return of +124.
4%, compared to +87. 1% for Booking Holdings Inc. (BKNG). Over 10 years, the gap is even starker: IHG returned +281. 7% versus BKNG's +240. 1%. 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 — IHG or BKNG?
By beta (market sensitivity over 5 years), Booking Holdings Inc.
(BKNG) is the lower-risk stock at 0. 73β versus InterContinental Hotels Group PLC's 0. 96β — meaning IHG is approximately 32% more volatile than BKNG relative to the S&P 500.
05Which is growing faster — IHG or BKNG?
By revenue growth (latest reported year), Booking Holdings Inc.
(BKNG) is pulling ahead at 13. 4% versus 5. 4% for InterContinental Hotels Group PLC (IHG). On earnings-per-share growth, the picture is similar: InterContinental Hotels Group PLC grew EPS 26. 5% year-over-year, compared to -4. 2% for Booking Holdings Inc.. Over a 3-year CAGR, BKNG leads at 16. 3% 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 — IHG or BKNG?
Booking Holdings Inc.
(BKNG) is the more profitable company, earning 20. 1% net margin versus 14. 6% for InterContinental Hotels Group PLC — meaning it keeps 20. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BKNG leads at 34. 5% versus 23. 1% for IHG. At the gross margin level — before operating expenses — BKNG leads at 100. 0%, 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 IHG or BKNG more undervalued right now?
On forward earnings alone, Booking Holdings Inc.
(BKNG) trades at 15. 9x forward P/E versus 26. 4x for InterContinental Hotels Group PLC — 10. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BKNG: 39. 6% to $231. 72.
08Which pays a better dividend — IHG or BKNG?
All stocks in this comparison pay dividends.
InterContinental Hotels Group PLC (IHG) offers the highest yield at 1. 2%, versus 0. 9% for Booking Holdings Inc. (BKNG).
09Is IHG or BKNG better for a retirement portfolio?
For long-horizon retirement investors, Booking Holdings Inc.
(BKNG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 73), 0. 9% yield, +240. 1% 10Y return). Both have compounded well over 10 years (BKNG: +240. 1%, IHG: +281. 7%), 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 IHG and BKNG?
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.
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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