Analyzing GreenTree Hospitality Group (GHG) and The Competition

GreenTree Hospitality Group (NYSE: GHG) is one of 34 publicly-traded companies in the “Hotels & motels” industry, but how does it compare to its rivals? We will compare GreenTree Hospitality Group to similar companies based on the strength of its valuation, profitability, risk, earnings, dividends, institutional ownership and analyst recommendations.

Dividends

GreenTree Hospitality Group pays an annual dividend of $0.28 per share and has a dividend yield of 1.8%. GreenTree Hospitality Group pays out 45.9% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.9% and pay out 43.5% of their earnings in the form of a dividend. GreenTree Hospitality Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GreenTree Hospitality Group and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GreenTree Hospitality Group 0 1 1 0 2.50
GreenTree Hospitality Group Competitors 462 1866 2546 99 2.46

GreenTree Hospitality Group presently has a consensus target price of $15.60, indicating a potential upside of 2.83%. As a group, “Hotels & motels” companies have a potential upside of 7.96%. Given GreenTree Hospitality Group’s rivals higher probable upside, analysts plainly believe GreenTree Hospitality Group has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

9.5% of GreenTree Hospitality Group shares are owned by institutional investors. Comparatively, 72.5% of shares of all “Hotels & motels” companies are owned by institutional investors. 14.5% of shares of all “Hotels & motels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares GreenTree Hospitality Group and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GreenTree Hospitality Group 41.76% 25.30% 15.17%
GreenTree Hospitality Group Competitors 9.18% 13.70% 4.61%

Valuation & Earnings

This table compares GreenTree Hospitality Group and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
GreenTree Hospitality Group $137.45 million $57.32 million 24.87
GreenTree Hospitality Group Competitors $3.49 billion $328.33 million 23.69

GreenTree Hospitality Group’s rivals have higher revenue and earnings than GreenTree Hospitality Group. GreenTree Hospitality Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

GreenTree Hospitality Group rivals beat GreenTree Hospitality Group on 9 of the 14 factors compared.

GreenTree Hospitality Group Company Profile

GreenTree Hospitality Group Ltd., through its subsidiaries, owns, operates, leases, franchises, and manages hotels in the People's Republic of China. The company operates hotels under the various brands, including GreenTree Eastern, as well as Gme, Gya, and VX; GreenTree Inns and GreenTree Alliance; and Vatica and Shell. As of March 31, 2018, it had 26 leased-and-operated hotels and 2,328 franchised-and-managed hotels with 195,552 hotel rooms in 266 cities. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China. GreenTree Hospitality Group Ltd. is a subsidiary of GreenTree Inns Hotel Management Group, Inc.

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