Choice Hotels vs Wyndham Hotels & Resorts
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The short version
- Choice Hotels is the larger business, with $1.6B of revenue in fiscal 2025 against $1.4B for Wyndham Hotels & Resorts.
- Wyndham Hotels & Resorts grew revenue faster (1.5%, against 0.8%).
- Wyndham Hotels & Resorts turned more of its sales into free cash flow (22.5% FCF margin, against 10.2%).
- Choice Hotels earned a higher return on the capital invested in it (19.5%, against 9.9%).
- Investors pay more for each dollar of Wyndham Hotels & Resorts’s earnings: a P/E of 26.5x against 15.3x for Choice Hotels.
| Latest fiscal year | CHH · FY25 | WH · FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.9B | $5.4B |
| Revenue | $1.6B | $1.4B |
| Free cash flow | $164M | $321M |
| Net income | $370M | $193M |
| Growth | ||
| Revenue growth | 0.8% | 1.5% |
| 5-year growth | 15.6% | 1.9% |
| Share count change | −3.1% | −3.6% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 28.1% | 28.1% |
| Net margin | 23.2% | 13.5% |
| FCF margin | 10.2% | 22.5% |
| Return on capital | 19.5% | 9.9% |
| Return on equity | — | 34.5% |
| Balance sheet | ||
| Net debt | $1.9B | $2.5B |
| Net debt / EBITDA | 3.7x | 5.4x |
| Dividends and buybacks | $192M | $393M |
| Valuation & quality | ||
| P/E | 15.3x | 26.5x |
| Piotroski F-score | 6 | 4 |
Revenue
FY16
CHH $808M
WH $1.3B
FY17
CHH $941M
WH $1.3B
FY18
CHH $1.0B
WH $1.9B
FY19
CHH $1.1B
WH $2.1B
FY20
CHH $774M
WH $1.3B
FY21
CHH $1.1B
WH $1.6B
FY22
CHH $1.4B
WH $1.5B
FY23
CHH $1.5B
WH $1.4B
FY24
CHH $1.6B
WH $1.4B
FY25
CHH $1.6B
WH $1.4B
CHH
WH
Operating margin
FY16
CHH 23.2%
WH 23.3%
FY17
CHH 30.8%
WH 19.5%
FY18
CHH 30.6%
WH 15.2%
FY19
CHH 28.6%
WH 15.0%
FY20
CHH 15.7%
WH −3.5%
FY21
CHH 40.1%
WH 28.5%
FY22
CHH 34.1%
WH 37.3%
FY23
CHH 24.3%
WH 36.0%
FY24
CHH 29.3%
WH 35.2%
FY25
CHH 28.1%
WH 28.1%
CHH
WH
Free cash flow
FY16
CHH $127M
WH $222M
FY17
CHH $234M
WH $232M
FY18
CHH $195M
WH $158M
FY19
CHH $213M
WH $50.0M
FY20
CHH $76.5M
WH $34.0M
FY21
CHH $309M
WH $389M
FY22
CHH $301M
WH $360M
FY23
CHH $228M
WH $339M
FY24
CHH $213M
WH $241M
FY25
CHH $164M
WH $321M
CHH
WH
Return on capital
FY16
CHH 54.2%
WH —
FY17
CHH 57.3%
WH —
FY18
CHH 64.9%
WH 9.4%
FY19
CHH 39.3%
WH 7.2%
FY20
CHH 15.1%
WH −1.2%
FY21
CHH 40.3%
WH 10.7%
FY22
CHH 34.2%
WH 14.2%
FY23
CHH 19.9%
WH 12.7%
FY24
CHH 21.6%
WH 13.2%
FY25
CHH 19.5%
WH 9.9%
CHH
WH
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.