Candlewood Hotel (OTCMKTS:CNDL) and Choice Hotels International (NYSE:CHH) Head-To-Head Comparison

Choice Hotels International (NYSE:CHH) and Candlewood Hotel (OTCMKTS:CNDL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Choice Hotels International and Candlewood Hotel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choice Hotels International	4	6	1	0	1.73
Candlewood Hotel	0	0	0	0	0.00

Choice Hotels International currently has a consensus price target of $134.18, indicating a potential downside of 4.71%. Given Candlewood Hotel’s higher possible upside, analysts clearly believe Candlewood Hotel is more favorable than Choice Hotels International.

Earnings and Valuation

This table compares Choice Hotels International and Candlewood Hotel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choice Hotels International	$1.55 billion	4.25	$258.51 million	$5.22	26.98
Candlewood Hotel	N/A	N/A	N/A	N/A	N/A

Choice Hotels International has higher revenue and earnings than Candlewood Hotel.

Profitability

This table compares Choice Hotels International and Candlewood Hotel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Choice Hotels International	16.27%	-659.01%	13.31%
Candlewood Hotel	N/A	N/A	N/A

Insider & Institutional Ownership

65.6% of Choice Hotels International shares are owned by institutional investors. 24.0% of Choice Hotels International shares are owned by insiders. Comparatively, 30.9% of Candlewood Hotel shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Choice Hotels International beats Candlewood Hotel on 6 of the 9 factors compared between the two stocks.

About Choice Hotels International

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection. Choice Hotels International, Inc. was founded in 1939 and is headquartered in North Bethesda, Maryland.

About Candlewood Hotel

Candlewood Hotel Company, Inc. operates, franchises, owns, and manages business-travel hotels. It offers studios, one-bedroom suites, and accommodations to mid-market business and personal travelers. Each hotel is equipped with an exercise room, a complimentary guest laundry facility, a dry cleaning drop, free local calls and long distance calls, and self-service packaged foods and beverages; and a free First Night Kit’ complete with items, such as coffee and popcorn. In addition, studio and one-bedroom suite offers amenities, such as two telephones, with two incoming direct dial lines and computer connections; an executive desk with a quad-outlet to accommodate office equipment needs, an executive chair, a bulletin board, a guest chair, and personalized remote accessible telephone mail; a television, video cassette player, and compact disc player; an iron and ironing board; and a kitchen. In addition, it operates recreational facilities, such as swimming pool and fitness center; a kitchen in every suite; a complimentary cooked to order’ breakfast; and a hospitality area for breakfast and socializing. The company was founded in 1995 and is based in Wichita, Kansas.