Reviewing Choice Hotels International (NYSE:CHH) and Oriental Land (OTCMKTS:OLCLY)

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

Insider and Institutional Ownership

65.6% of Choice Hotels International shares are held by institutional investors. 23.8% of Choice Hotels International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Choice Hotels International pays an annual dividend of $1.15 per share and has a dividend yield of 0.9%. Oriental Land pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Choice Hotels International pays out 17.6% of its earnings in the form of a dividend. Oriental Land pays out 14.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk & Volatility

Choice Hotels International has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Oriental Land has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Choice Hotels International and Oriental Land, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Choice Hotels International	4	6	3	0	1.92
Oriental Land	0	1	0	0	2.00

Choice Hotels International presently has a consensus price target of $134.38, suggesting a potential upside of 2.36%. Given Choice Hotels International’s higher probable upside, research analysts plainly believe Choice Hotels International is more favorable than Oriental Land.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Choice Hotels International	19.75%	-377.51%	13.07%
Oriental Land	18.26%	12.82%	8.82%

Valuation and Earnings

This table compares Choice Hotels International and Oriental Land”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Choice Hotels International	$1.58 billion	3.84	$299.67 million	$6.55	20.04
Oriental Land	$4.46 billion	8.40	$819.46 million	$0.50	41.62

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

Summary

Choice Hotels International beats Oriental Land on 9 of the 16 factors compared between the two stocks.

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.

About Oriental Land

Oriental Land Co., Ltd. operates and manages theme parks and hotels in Japan. It operates through Theme Park, Hotel Business, and Other Business segments. The Theme Park segment operates and manages Tokyo Disneyland and Tokyo DisneySea theme parks. The Hotel Business segment operates and manages Tokyo Disneyland Hotel, Tokyo DisneySea Hotel MiraCosta, Disney Ambassador Hotel, and Tokyo Disney Celebration Hotel, as well as Tokyo Disney Resort Toy Story Hotel. The Other Business segment operates and manages Ikspiari, a shopping complex that includes shops and restaurants, and a cinema complex; and Disney Resort Line, a monorail connecting four stations within Tokyo Disney Resort. It is also involved in the land development. Oriental Land Co., Ltd. was incorporated in 1960 and is based in Urayasu, Japan.