Financial Review: Candlewood Hotel (OTCMKTS:CNDL) versus GreenTree Hospitality Group (NYSE:GHG)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Candlewood Hotel and GreenTree Hospitality Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Candlewood Hotel	0	0	0	0	0.00
GreenTree Hospitality Group	0	1	0	0	2.00

GreenTree Hospitality Group has a consensus target price of $4.00, indicating a potential upside of 47.06%. Given GreenTree Hospitality Group’s stronger consensus rating and higher possible upside, analysts clearly believe GreenTree Hospitality Group is more favorable than Candlewood Hotel.

Earnings and Valuation

This table compares Candlewood Hotel and GreenTree Hospitality Group”s 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
GreenTree Hospitality Group	$1.51 billion	0.18	$37.93 million	$0.54	5.04

GreenTree Hospitality Group has higher revenue and earnings than Candlewood Hotel.

Institutional and Insider Ownership

8.1% of GreenTree Hospitality Group shares are held by institutional investors. 30.9% of Candlewood Hotel shares are held by insiders. Comparatively, 88.7% of GreenTree Hospitality Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Candlewood Hotel and GreenTree Hospitality Group’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
GreenTree Hospitality Group	13.93%	12.91%	3.86%

Summary

GreenTree Hospitality Group beats Candlewood Hotel on 8 of the 8 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 GreenTree Hospitality Group

GreenTree Hospitality Group Ltd., through its subsidiaries, develops leased-and-operated, and franchised-and-managed hotels under the GreenTree Inns brand in the People's Republic of China. It also engages in investment holding activities; and provision of information technology services. The company was founded in 2004 and is headquartered in Shanghai, the People's Republic of China.