Contrasting Choice Hotels International (NYSE:CHH) & Candlewood Hotel (OTCMKTS:CNDL)

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

Institutional & Insider Ownership

65.6% of Choice Hotels International shares are held by institutional investors. 30.9% of Candlewood Hotel shares are held by insiders. Comparatively, 24.0% of Choice Hotels International shares are held 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.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Candlewood Hotel	N/A	N/A	N/A	N/A	N/A
Choice Hotels International	$1.55 billion	4.33	$258.51 million	$5.22	27.45

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Candlewood Hotel and Choice Hotels International, as reported by MarketBeat.com.

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

Choice Hotels International has a consensus price target of $134.36, suggesting a potential downside of 6.24%. Given Candlewood Hotel’s higher possible upside, analysts clearly believe Candlewood Hotel is more favorable than Choice Hotels International.

Summary

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

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.

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.