Financial Survey: Choice Hotels International (NYSE:CHH) versus Viking (NYSE:VIK)

Viking (NYSE:VIK) and Choice Hotels International (NYSE:CHH) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viking	19.33%	117.98%	10.80%
Choice Hotels International	20.28%	205.69%	10.68%

Insider and Institutional Ownership

98.8% of Viking shares are owned by institutional investors. Comparatively, 65.6% of Choice Hotels International shares are owned by institutional investors. 23.9% of Choice Hotels International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Viking has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Choice Hotels International has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Viking and Choice Hotels International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viking	1	2	16	1	2.85
Choice Hotels International	3	9	2	0	1.93

Viking currently has a consensus price target of $106.83, suggesting a potential upside of 35.66%. Choice Hotels International has a consensus price target of $112.67, suggesting a potential upside of 7.87%. Given Viking’s stronger consensus rating and higher possible upside, research analysts plainly believe Viking is more favorable than Choice Hotels International.

Valuation & Earnings

This table compares Viking 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
Viking	$6.50 billion	5.40	$1.15 billion	$3.01	26.16
Choice Hotels International	$1.60 billion	2.94	$369.95 million	$7.08	14.75

Viking has higher revenue and earnings than Choice Hotels International. Choice Hotels International is trading at a lower price-to-earnings ratio than Viking, indicating that it is currently the more affordable of the two stocks.

Summary

Viking beats Choice Hotels International on 11 of the 15 factors compared between the two stocks.

About Viking

Viking Holdings Ltd engages in the passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally. It operates through River and Ocean segments. The company also operates as a tour entrepreneur for passengers and related activities in tourism. As of December 31, 2023, it operated a fleet of 92 ships, including 81 river vessels comprising 58 Longships, 10 smaller classes based on the Longship design, 11 other river vessels, and 1 river vessel charter and the Viking Mississippi; 9 ocean ships; and 2 expedition ships. The company was founded in 1997 and is based in Pembroke, Bermuda.

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.