Choice Hotels vs Wyndham Hotels & Resorts
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KIRA’s take AI analyst
I put Choice Hotels and Wyndham Hotels & Resorts side by side, using each one’s latest annual report. Here is what stands out:
- 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.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Choice Hotels
CHH
5/9
5-year growthNet marginReturn on capitalPiotroski F-scoreNet debt / EBITDA
Wyndham Hotels & Resorts
WH
4/9
Revenue growthOperating marginFCF marginShare count change
Side by side
Best in the row
| 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 |
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.