Analyzing H World Group (HTHT) and Its Competitors

H World Group (NASDAQ:HTHT) is one of 383 public companies in the “Hotels, Restaurants & Leisure” industry, but how does it compare to its rivals? We will compare H World Group to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Risk and Volatility

H World Group has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, H World Group’s rivals have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Profitability

This table compares H World Group and its rivals’ 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%
H World Group Competitors	8.51%	-42.06%	2.05%

Earnings and Valuation

This table compares H World Group and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
H World Group	$26.60 billion	$726.00 million	22.27
H World Group Competitors	$3.42 billion	$250.18 million	-161.16

H World Group has higher revenue and earnings than its rivals. H World Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

46.4% of H World Group shares are owned by institutional investors. Comparatively, 48.6% of shares of all “Hotels, Restaurants & Leisure” companies are owned by institutional investors. 49.4% of H World Group shares are owned by insiders. Comparatively, 22.0% of shares of all “Hotels, Restaurants & Leisure” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

H World Group pays an annual dividend of $1.70 per share and has a dividend yield of 3.4%. H World Group pays out 74.9% of its earnings in the form of a dividend. As a group, “Hotels, Restaurants & Leisure” companies pay a dividend yield of 3.2% and pay out 38.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for H World Group and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H World Group	0	1	3	0	2.75
H World Group Competitors	3835	17324	25643	908	2.50

H World Group presently has a consensus target price of $61.20, indicating a potential upside of 21.07%. As a group, “Hotels, Restaurants & Leisure” companies have a potential upside of 53.20%. Given H World Group’s rivals higher possible upside, analysts clearly believe H World Group has less favorable growth aspects than its rivals.

Summary

H World Group beats its rivals on 10 of the 15 factors compared.

H World Group Company Profile

H World Group Limited is a hotel company that develops, operates, franchises and manages hotels. Its business includes both directly operated properties and hotels run by third-party owners under its brands and management or franchise arrangements. The company’s portfolio includes brands serving different market segments, such as HanTing, JI Hotel and Crystal Orange in China, as well as Steigenberger, IntercityHotel and Zleep Hotels through its European operations. Its offerings range from economy and midscale lodging to upscale hotels.