Financial Analysis: GreenTree Hospitality Group (NYSE:GHG) & Shangri-La Asia (OTCMKTS:SHALY)

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

Analyst Recommendations

This is a summary of current ratings and target prices for GreenTree Hospitality Group and Shangri-La Asia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenTree Hospitality Group	1	0	0	0	1.00
Shangri-La Asia	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GreenTree Hospitality Group	N/A	N/A	N/A
Shangri-La Asia	N/A	N/A	N/A

Institutional and Insider Ownership

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

Volatility and Risk

GreenTree Hospitality Group has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Shangri-La Asia has a beta of -0.11, suggesting that its share price is 111% less volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenTree Hospitality Group	$184.05 million	1.11	$15.07 million	$0.43	4.67
Shangri-La Asia	$2.19 billion	N/A	$161.39 million	N/A	N/A

Shangri-La Asia has higher revenue and earnings than GreenTree Hospitality Group.

Summary

GreenTree Hospitality Group beats Shangri-La Asia on 4 of the 6 factors compared between the two stocks.

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.

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.