Critical Comparison: GreenTree Hospitality Group (NYSE:GHG) vs. Jollibee Foods (OTCMKTS:JBFCY)

Jollibee Foods (OTCMKTS:JBFCY) and GreenTree Hospitality Group (NYSE:GHG) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Profitability

This table compares Jollibee Foods and GreenTree Hospitality Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Jollibee Foods	3.16%	14.04%	3.55%
GreenTree Hospitality Group	4.14%	2.49%	0.84%

Dividends

Jollibee Foods pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. GreenTree Hospitality Group pays an annual dividend of $0.05 per share and has a dividend yield of 5.2%. Jollibee Foods pays out 15.5% of its earnings in the form of a dividend. 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.

Analyst Recommendations

This is a breakdown of current ratings for Jollibee Foods and GreenTree Hospitality Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Jollibee Foods	0	1	0	0	2.00
GreenTree Hospitality Group	1	0	0	0	1.00

Institutional and Insider Ownership

8.1% of GreenTree Hospitality Group shares are held by institutional investors. 88.7% of GreenTree Hospitality Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Jollibee Foods and GreenTree Hospitality Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Jollibee Foods	$5.31 billion	0.47	$189.17 million	$0.58	15.52
GreenTree Hospitality Group	$156.92 million	0.62	$23.85 million	$0.05	19.20

Jollibee Foods has higher revenue and earnings than GreenTree Hospitality Group. Jollibee Foods is trading at a lower price-to-earnings ratio than GreenTree Hospitality Group, indicating that it is currently the more affordable of the two stocks.

Summary

Jollibee Foods beats GreenTree Hospitality Group on 7 of the 13 factors compared between the two stocks.

About Jollibee Foods

Jollibee Foods Corporation develops, operates, and franchises quick service restaurants. The company operates quick-service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, PHO24, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Yoshinoya, Milksha, and Panda Express names in the Philippines, the United States, Canada, the People's Republic of China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Australia, and India. It also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources, and logistics services. The company was incorporated in 1978 and is based in Pasig, the Philippines.

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.