Choice Hotels International (NYSE:CHH) & ONE Group Hospitality (NASDAQ:STKS) Head to Head Contrast
by Tristan Rich · The Markets DailyONE Group Hospitality (NASDAQ:STKS – Get Free Report) and Choice Hotels International (NYSE:CHH – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
Earnings and Valuation
This table compares ONE Group Hospitality and Choice Hotels International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ONE Group Hospitality | $797.26 million | 0.05 | -$92.24 million | ($1.84) | -0.64 |
| Choice Hotels International | $1.60 billion | 3.31 | $369.95 million | $4.50 | 26.37 |
Choice Hotels International has higher revenue and earnings than ONE Group Hospitality. ONE Group Hospitality is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares ONE Group Hospitality and Choice Hotels International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ONE Group Hospitality | -2.68% | -10.49% | -0.91% |
| Choice Hotels International | 12.65% | 216.71% | 10.71% |
Risk and Volatility
ONE Group Hospitality has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for ONE Group Hospitality and Choice Hotels International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ONE Group Hospitality | 1 | 2 | 1 | 0 | 2.00 |
| Choice Hotels International | 3 | 10 | 2 | 0 | 1.93 |
ONE Group Hospitality presently has a consensus target price of $4.00, suggesting a potential upside of 238.98%. Choice Hotels International has a consensus target price of $115.46, suggesting a potential downside of 2.72%. Given ONE Group Hospitality’s stronger consensus rating and higher probable upside, analysts plainly believe ONE Group Hospitality is more favorable than Choice Hotels International.
Insider and Institutional Ownership
29.1% of ONE Group Hospitality shares are held by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are held by institutional investors. 25.7% of ONE Group Hospitality shares are held by company insiders. Comparatively, 23.9% of Choice Hotels International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Choice Hotels International beats ONE Group Hospitality on 10 of the 14 factors compared between the two stocks.
About ONE Group Hospitality
The ONE Group Hospitality, Inc., a restaurant company, develops, owns, operates, manages, and licenses restaurants and lounges worldwide. It operates through STK, Kona Grill, and ONE Hospitality segments. The company also provides turn-key food and beverage services for hospitality venues, including hotels, casinos, and other locations. Its hospitality food and beverage solutions include developing, managing, and operating restaurants, bars, rooftops, pools, banqueting, catering, private dining rooms, room service, and mini bars; and offers hospitality advisory and consulting services. The company operates restaurants primarily under the STK and Kona Grill brands. The ONE Group Hospitality, Inc. was founded in 2004 and is based in Denver, Colorado.
About Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.