Krispy Kreme (NASDAQ:DNUT) and H World Group (NASDAQ:HTHT) Financial Comparison

H World Group (NASDAQ:HTHT) and Krispy Kreme (NASDAQ:DNUT) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Earnings & Valuation

This table compares H World Group and Krispy Kreme”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H World Group	$3.62 billion	3.60	$726.00 million	$2.23	19.00
Krispy Kreme	$1.52 billion	0.35	-$515.77 million	($2.99)	-1.05

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

Institutional & Insider Ownership

46.4% of H World Group shares are owned by institutional investors. Comparatively, 81.7% of Krispy Kreme shares are owned by institutional investors. 49.4% of H World Group shares are owned by insiders. Comparatively, 1.6% of Krispy Kreme 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.

Risk & Volatility

H World Group has a beta of 0.15, suggesting that its share price is 85% less volatile than the S&P 500. Comparatively, Krispy Kreme has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for H World Group and Krispy Kreme, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H World Group	0	2	3	0	2.60
Krispy Kreme	3	1	2	0	1.83

H World Group currently has a consensus price target of $61.20, indicating a potential upside of 44.41%. Krispy Kreme has a consensus price target of $4.50, indicating a potential upside of 44.00%. Given H World Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe H World Group is more favorable than Krispy Kreme.

Profitability

This table compares H World Group and Krispy Kreme’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H World Group	19.22%	39.73%	7.47%
Krispy Kreme	-33.36%	-4.34%	-1.15%

Summary

H World Group beats Krispy Kreme on 12 of the 14 factors compared between the two stocks.

About H World Group

H World Group Limited develops leased and owned, manachised, and franchised hotels in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

About Krispy Kreme

Krispy Kreme, Inc., together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats. It also provides cookies under the Insomnia Cookies brand, cookie cakes, ice cream, cookie-wiches, and brownies; and operates Krispy Kreme company-owned shops and franchise shops. The company was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. in May 2021. Krispy Kreme, Inc. was founded in 1937 and is based in Charlotte, North Carolina.