Accor (OTCMKTS:ACRFF) and Huazhu Group (NASDAQ:HTHT) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Insider and Institutional Ownership
43.6% of Huazhu Group shares are held by institutional investors. 49.4% of Huazhu Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Accor and Huazhu Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Huazhu Group||$1.46 billion||7.84||$104.16 million||$0.36||109.39|
Huazhu Group has higher revenue and earnings than Accor.
This is a summary of recent recommendations and price targets for Accor and Huazhu Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Huazhu Group has a consensus target price of $42.92, suggesting a potential upside of 8.98%. Given Huazhu Group’s higher probable upside, analysts clearly believe Huazhu Group is more favorable than Accor.
This table compares Accor and Huazhu Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Huazhu Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Accor does not pay a dividend. Huazhu Group pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Huazhu Group beats Accor on 9 of the 10 factors compared between the two stocks.
Accor SA operates a chain of hotels worldwide. It operates through HotelServices, Hotels Assets, and New Businesses segments. The company owns, operates, manages, and franchises hotels. It also offers digital services for hotels: digital sales through VeryChic, which operates a Website and mobile applications offering private sales of luxury and upscale hotel rooms and breaks; and concierge services, as well as rents private luxury homes. The company was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.
About Huazhu Group
Huazhu Group Limited, together with its subsidiaries, develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers. As of September 30, 2018, it had 698 leased hotels, 3,139 manachised hotels, and 218 franchised hotels with 409,516 rooms. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was incorporated in 2007 and is headquartered in Shanghai, the People's Republic of China.
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