H World Group (NASDAQ:HTHT) and Shangri-La Asia (OTCMKTS:SHALY) Head-To-Head Review

Shangri-La Asia (OTCMKTS:SHALY) and H World Group (NASDAQ:HTHT) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares Shangri-La Asia and H World Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shangri-La Asia	$2.19 billion	N/A	$161.39 million	N/A	N/A
H World Group	$3.27 billion	3.55	$418.00 million	$1.66	22.76

H World Group has higher revenue and earnings than Shangri-La Asia.

Dividends

Shangri-La Asia pays an annual dividend of $0.26 per share and has a dividend yield of 2.0%. H World Group pays an annual dividend of $1.58 per share and has a dividend yield of 4.2%. H World Group pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of recent recommendations for Shangri-La Asia and H World Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shangri-La Asia	0	0	0	0	0.00
H World Group	0	4	3	0	2.43

H World Group has a consensus target price of $40.80, indicating a potential upside of 7.99%. Given H World Group’s stronger consensus rating and higher probable upside, analysts clearly believe H World Group is more favorable than Shangri-La Asia.

Institutional & Insider Ownership

46.4% of H World Group shares are owned by institutional investors. 49.4% of H World Group shares are owned 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.

Profitability

This table compares Shangri-La Asia and H World Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shangri-La Asia	N/A	N/A	N/A
H World Group	15.54%	28.97%	5.47%

Volatility & Risk

Shangri-La Asia has a beta of -0.11, indicating that its share price is 111% less volatile than the S&P 500. Comparatively, H World Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Summary

H World Group beats Shangri-La Asia on 12 of the 13 factors compared between the two stocks.

About Shangri-La Asia

Shangri-La Asia Limited, an investment holding company, develops, owns/leases, operates, and manages hotels and associated properties worldwide. It operates through Hotel Properties, Hotel Management and Related Services, Investment Properties, and Property Development for Sale segments. The company develops, owns, and operates office and commercial properties, and serviced apartments/residences; and operates restaurants and amusement parks. In addition, it is involved in the hotel ownership and management, and property rental and sale business; property investment; and develop and sale real estate, as well as retail and wines trading activities. The company operates hotels under the Shangri-La Hotels and Resorts, Kerry Hotels, JEN by Shangri-La, Traders Hotel, Rasa, Summer Palace, and Shang Palace, as well as CHI, The Spa at Shangri-La brand names. Shangri-La Asia Limited was founded in 1971 and is headquartered in Quarry Bay, Hong Kong.

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.