Critical Contrast: GreenTree Hospitality Group (GHG) and Its Peers

GreenTree Hospitality Group (NYSE:GHG) is one of 382 publicly-traded companies in the “Hotels, Restaurants & Leisure” industry, but how does it contrast to its peers? We will compare GreenTree Hospitality Group to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Insider & Institutional Ownership

8.1% of GreenTree Hospitality Group shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 88.7% of GreenTree Hospitality Group shares are owned by company insiders. Comparatively, 22.3% of shares of all “Hotels, Restaurants & Leisure” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

GreenTree Hospitality Group pays an annual dividend of $0.05 per share and has a dividend yield of 5.1%. GreenTree Hospitality Group pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for GreenTree Hospitality Group and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenTree Hospitality Group	1	0	0	0	1.00
GreenTree Hospitality Group Competitors	3807	17285	25595	906	2.50

As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 58.66%. Given GreenTree Hospitality Group’s peers stronger consensus rating and higher probable upside, analysts clearly believe GreenTree Hospitality Group has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares GreenTree Hospitality Group and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GreenTree Hospitality Group	$1.01 billion	$23.85 million	19.50
GreenTree Hospitality Group Competitors	$3.43 billion	$250.20 million	-155.62

GreenTree Hospitality Group’s peers have higher revenue and earnings than GreenTree Hospitality Group. GreenTree Hospitality Group is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares GreenTree Hospitality Group and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenTree Hospitality Group	4.14%	2.49%	0.84%
GreenTree Hospitality Group Competitors	3.93%	-40.66%	2.07%

Risk & Volatility

GreenTree Hospitality Group has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, GreenTree Hospitality Group’s peers have a beta of 1.44, suggesting that their average share price is 44% more volatile than the S&P 500.

Summary

GreenTree Hospitality Group peers beat GreenTree Hospitality Group on 10 of the 15 factors compared.

About GreenTree Hospitality Group

GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree Inns brand in the People's Republic of China. It also engages in investment holding activities; and provision of information technology services. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.