Huazhu Group (NASDAQ:HTHT) and Accor (OTCMKTS:ACRFF) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for Huazhu Group and Accor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huazhu Group 1 1 6 0 2.63
Accor 0 0 0 0 N/A

Huazhu Group currently has a consensus target price of $42.92, indicating a potential upside of 9.93%. Given Huazhu Group’s higher probable upside, equities research analysts clearly believe Huazhu Group is more favorable than Accor.

Dividends

Huazhu Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. Accor does not pay a dividend. Huazhu Group pays out 49.2% of its earnings in the form of a dividend.

Profitability

This table compares Huazhu Group and Accor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huazhu Group 14.00% 24.86% 8.07%
Accor N/A N/A N/A

Institutional and Insider Ownership

43.7% of Huazhu Group shares are held by institutional investors. 49.4% of Huazhu Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Huazhu Group and Accor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huazhu Group $1.26 billion 9.06 $190.15 million $0.65 60.06
Accor N/A N/A N/A N/A N/A

Huazhu Group has higher revenue and earnings than Accor.

Summary

Huazhu Group beats Accor on 9 of the 10 factors compared between the two stocks.

About Huazhu Group

Huazhu Group Limited, together with its subsidiaries, develops and operates leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under the Hi Inn, HanTing Hotel, Elan Hotel, Orange Hotel, HanTing Premium, Starway Hotel, JI Hotel, Orange Hotel Select, Manxin Hotel, Crystal Orange Hotel, Joya Hotel, Grand Mercure, Novotel, Mercure, Ibis Styles, and Ibis brand names for business and leisure travelers. As of September 30, 2018, it had 698 leased hotels, 3,139 manachised hotels, and 218 franchised hotels with 409,516 rooms. The company was formerly known as China Lodging Group, Limited and changed its name to Huazhu Group Limited in June 2018. Huazhu Group Limited was incorporated in 2007 and is headquartered in Shanghai, the People's Republic of China.

About Accor

Accor SA operates a chain of hotels worldwide. It operates through HotelServices, Hotels Assets, and New Businesses segments. The company owns, operates, manages, and franchises hotels. It also offers digital services for hotels: digital sales through VeryChic, which operates a Website and mobile applications offering private sales of luxury and upscale hotel rooms and breaks; and concierge services, as well as rents private luxury homes. The company was founded in 1967 and is headquartered in Issy-les-Moulineaux, France.

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