Choice Hotels vs Sabre
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KIRA’s take AI analyst
I put Choice Hotels and Sabre side by side, using each one’s latest annual report. Here is what stands out:
- 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 1.0x for Sabre.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Choice Hotels
CHH
7/9
Operating marginNet marginFCF marginReturn on capitalPiotroski F-scoreNet debt / EBITDAShare count change
Sabre
SABR
2/9
Revenue growth5-year growth
Side by side
Best in the row
| Latest fiscal year | CHH FY25 | SABR FY25 |
|---|---|---|
| Size | ||
| Market cap | $4.9B | $655M |
| 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 | 1.0x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.