Choice Hotels International (NYSE:CHH) and LuxUrban Hotels (NASDAQ:LUXHP) Critical Comparison

Choice Hotels International (NYSE:CHH) and LuxUrban Hotels (NASDAQ:LUXHP) are both consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Institutional and Insider Ownership

65.6% of Choice Hotels International shares are held by institutional investors. 23.9% of Choice Hotels International shares are held 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.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Choice Hotels International and LuxUrban Hotels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choice Hotels International	4	8	2	0	1.86
LuxUrban Hotels	0	0	0	0	0.00

Choice Hotels International currently has a consensus target price of $112.33, indicating a potential upside of 7.71%. Given Choice Hotels International’s stronger consensus rating and higher probable upside, research analysts plainly believe Choice Hotels International is more favorable than LuxUrban Hotels.

Profitability

This table compares Choice Hotels International and LuxUrban Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choice Hotels International	20.28%	205.69%	10.68%
LuxUrban Hotels	N/A	N/A	N/A

Earnings and Valuation

This table compares Choice Hotels International and LuxUrban Hotels”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choice Hotels International	$1.60 billion	2.94	$369.95 million	$7.08	14.73
LuxUrban Hotels	$72.79 million	N/A	N/A	N/A	N/A

Choice Hotels International has higher revenue and earnings than LuxUrban Hotels.

Dividends

Choice Hotels International pays an annual dividend of $1.15 per share and has a dividend yield of 1.1%. LuxUrban Hotels pays an annual dividend of $3.25 per share. Choice Hotels International pays out 16.2% of its earnings in the form of a dividend.

Summary

Choice Hotels International beats LuxUrban Hotels on 10 of the 11 factors compared between the two stocks.

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.

About LuxUrban Hotels

LuxUrban Hotels Inc. engages in the leasing of entire existing hotels on a long-term basis and rent out hotel rooms in the properties it leases. It manages a portfolio of hotel rooms in New York, Miami Beach, New Orleans, and Los Angeles. The company was formerly known as CorpHousing Group Inc. and changed its name to LuxUrban Hotels Inc. in November 2022. LuxUrban Hotels Inc. was incorporated in 2017 and is headquartered in Miami, Florida.