Financial Analysis: NextTrip (NASDAQ:NTRP) and H World Group (NASDAQ:HTHT)

H World Group (NASDAQ:HTHT) and NextTrip (NASDAQ:NTRP) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Risk and Volatility

H World Group has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, NextTrip has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

46.4% of H World Group shares are held by institutional investors. Comparatively, 3.8% of NextTrip shares are held by institutional investors. 49.4% of H World Group shares are held by insiders. Comparatively, 40.0% of NextTrip shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H World Group	18.90%	41.05%	8.07%
NextTrip	-289.92%	-246.48%	-105.09%

Earnings and Valuation

This table compares H World Group and NextTrip”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	3.67	$726.00 million	$2.27	19.00
NextTrip	$3.72 million	6.13	-$15.91 million	($1.41)	-1.07

H World Group has higher revenue and earnings than NextTrip. NextTrip 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for H World Group and NextTrip, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H World Group	0	2	3	0	2.60
NextTrip	1	1	1	0	2.00

H World Group presently has a consensus price target of $61.20, suggesting a potential upside of 41.93%. NextTrip has a consensus price target of $7.75, suggesting a potential upside of 413.25%. Given NextTrip’s higher possible upside, analysts clearly believe NextTrip is more favorable than H World Group.

Summary

H World Group beats NextTrip on 11 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 NextTrip

NextTrip, Inc., through its subsidiaries, engages in the provision of travel technology solutions in the United States. The company offers NXT2.0, a booking engine technology platform, which provides travel distributors access to an inventory. It is also involved in the provision of online leisure travel agency services for booking hotels, flights, and curated vacations. The company was formerly known as Sigma Additive Solutions, Inc. and changed its name to NextTrip, Inc. in March 2024. NextTrip, Inc. is based in Sunrise, Florida.