Choice Hotels vs Sabre
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The short version
- Sabre is the larger business, with $2.8B of revenue in fiscal 2025 against $1.6B for Choice Hotels, about 1.7 times as much.
- Choice Hotels kept more of each dollar of sales as operating profit (28.1% operating margin, against 10.7%).
- Choice Hotels turned more of its sales into free cash flow (10.2% FCF margin, against −6.9%).
- Choice Hotels earned a higher return on the capital invested in it (19.5%, against 8.9%).
- Investors pay more for each dollar of Choice Hotels’s earnings: a P/E of 15.3x against 0.9x for Sabre.
| Latest fiscal year | CHH · FY25 | SABR · FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.9B | $607M |
| Revenue | $1.6B | $2.8B |
| Free cash flow | $164M | −$192M |
| Net income | $370M | $525M |
| Growth | ||
| Revenue growth | 0.8% | 1.0% |
| 5-year growth | 15.6% | 15.7% |
| Share count change | −3.1% | 2.1% |
| Profitability | ||
| Gross margin | — | 56.4% |
| Operating margin | 28.1% | 10.7% |
| Net margin | 23.2% | 18.9% |
| FCF margin | 10.2% | −6.9% |
| Return on capital | 19.5% | 8.9% |
| Return on equity | — | — |
| Balance sheet | ||
| Net debt | $1.9B | $3.6B |
| Net debt / EBITDA | 3.7x | 8.9x |
| Dividends and buybacks | $192M | $0.0M |
| Valuation & quality | ||
| P/E | 15.3x | 0.9x |
| Piotroski F-score | 6 | 5 |
Revenue
FY16
CHH $808M
SABR $3.4B
FY17
CHH $941M
SABR $3.6B
FY18
CHH $1.0B
SABR $3.9B
FY19
CHH $1.1B
SABR $4.0B
FY20
CHH $774M
SABR $1.3B
FY21
CHH $1.1B
SABR $1.7B
FY22
CHH $1.4B
SABR $2.5B
FY23
CHH $1.5B
SABR $2.6B
FY24
CHH $1.6B
SABR $2.7B
FY25
CHH $1.6B
SABR $2.8B
CHH
SABR
Operating margin
FY16
CHH 23.2%
SABR 13.6%
FY17
CHH 30.8%
SABR 13.7%
FY18
CHH 30.6%
SABR 14.5%
FY19
CHH 28.6%
SABR 9.1%
FY20
CHH 15.7%
SABR −74.1%
FY21
CHH 40.1%
SABR −39.4%
FY22
CHH 34.1%
SABR −10.3%
FY23
CHH 24.3%
SABR 1.2%
FY24
CHH 29.3%
SABR 8.8%
FY25
CHH 28.1%
SABR 10.7%
CHH
SABR
Free cash flow
FY16
CHH $127M
SABR $372M
FY17
CHH $234M
SABR $362M
FY18
CHH $195M
SABR $441M
FY19
CHH $213M
SABR $466M
FY20
CHH $76.5M
SABR −$836M
FY21
CHH $309M
SABR −$469M
FY22
CHH $301M
SABR −$346M
FY23
CHH $228M
SABR −$13.6M
FY24
CHH $213M
SABR −$9.3M
FY25
CHH $164M
SABR −$192M
CHH
SABR
Return on capital
FY16
CHH 54.2%
SABR 8.9%
FY17
CHH 57.3%
SABR 8.4%
FY18
CHH 64.9%
SABR 12.4%
FY19
CHH 39.3%
SABR 7.6%
FY20
CHH 15.1%
SABR —
FY21
CHH 40.3%
SABR —
FY22
CHH 34.2%
SABR −6.5%
FY23
CHH 19.9%
SABR 0.9%
FY24
CHH 21.6%
SABR 6.9%
FY25
CHH 19.5%
SABR 8.9%
CHH
SABR
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.