H World Group (NASDAQ:HTHT) versus Civeo (NYSE:CVEO) Critical Survey

H World Group (NASDAQ:HTHT) and Civeo (NYSE:CVEO) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for H World Group and Civeo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H World Group	0	2	3	0	2.60
Civeo	0	0	1	0	3.00

H World Group presently has a consensus price target of $40.80, indicating a potential upside of 30.64%. Civeo has a consensus price target of $27.00, indicating a potential upside of 13.30%. Given H World Group’s higher probable upside, equities research analysts clearly believe H World Group is more favorable than Civeo.

Institutional & Insider Ownership

46.4% of H World Group shares are owned by institutional investors. Comparatively, 81.4% of Civeo shares are owned by institutional investors. 49.4% of H World Group shares are owned by company insiders. Comparatively, 4.7% of Civeo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares H World Group and Civeo”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H World Group	$3.27 billion	2.93	$418.00 million	$1.44	21.69
Civeo	$682.12 million	0.44	-$17.07 million	($2.43)	-9.81

H World Group has higher revenue and earnings than Civeo. Civeo 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.

Volatility & Risk

H World Group has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Civeo has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H World Group	13.74%	27.79%	5.35%
Civeo	-5.25%	-12.76%	-6.69%

Summary

H World Group beats Civeo on 11 of the 14 factors compared between the two stocks.

About H World Group

H World Group Limited develops leased and owned, manachised, and franchised hotels 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. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

About Civeo

Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile assets, including modular, skid-mounted accommodation, and central facilities that provide short to medium-term accommodation needs. It offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services, and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as lodging and catering services. It serves oil, mining, engineering, and oilfield and mining service companies. Civeo Corporation was founded in 1977 and is headquartered in Houston, Texas.