Critical Analysis: Meliá Hotels International (OTCMKTS:SMIZF) vs. H World Group (NASDAQ:HTHT)

Meliá Hotels International (OTCMKTS:SMIZFGet Free Report) and H World Group (NASDAQ:HTHTGet Free Report) are both consumer cyclical companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Insider and Institutional Ownership

24.1% of Meliá Hotels International shares are owned by institutional investors. Comparatively, 46.7% of H World Group shares are owned by institutional investors. 49.4% of H World Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Meliá Hotels International and H World Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meliá Hotels International 3 2 1 0 1.67
H World Group 0 0 1 1 3.50

H World Group has a consensus target price of $60.60, suggesting a potential upside of 49.15%. Given H World Group’s stronger consensus rating and higher possible upside, analysts clearly believe H World Group is more favorable than Meliá Hotels International.

Profitability

This table compares Meliá Hotels International and H World Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meliá Hotels International N/A N/A N/A
H World Group 6.41% 10.73% 1.81%

Earnings and Valuation

This table compares Meliá Hotels International and H World Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meliá Hotels International N/A N/A N/A ($0.34) -17.64
H World Group $2.01 billion 6.60 -$264.00 million $0.49 82.92

Meliá Hotels International has higher earnings, but lower revenue than H World Group. Meliá Hotels International is trading at a lower price-to-earnings ratio than H World Group, indicating that it is currently the more affordable of the two stocks.

Summary

H World Group beats Meliá Hotels International on 11 of the 11 factors compared between the two stocks.

About Meliá Hotels International

(Get Free Report)

Meliá Hotels International, S.A. owns, manages, operates, leases, and franchises hotels worldwide. It operates through Hotel Management, Hotel Business, Other Business Linked to Hotel Management, Real Estate, and Vacation Club segments. The company operates hotels under the Gran Meliá Hotels & Resorts, Paradisus by Meliá, ME by Meliá, Meliá Hotels & Resorts, INNSIDE by Meliá, Sol by Meliá, TRYP by Wyndham, and Circle by Melia brand names, as well as Meliá PRO. It also operates vacation club; develops and operates real estate properties; and engages in the casinos and tour-operator activities. The company was formerly known as Sol Meliá, S.A. and changed its name to Meliá Hotels International, S.A. in June 2011. Meliá Hotels International, S.A. was founded in 1956 and is based in Palma de Mallorca, Spain.

About H World Group

(Get Free Report)

H World Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

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