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CHH vs FND

CHH
Choice Hotels International, Inc.
BEARISH
Price
$119.07
Market Cap
$5.45B
Sector
Consumer Cyclical
AI Confidence
85%
FND
Floor & Decor Holdings, Inc.
BEARISH
Price
$51.08
Market Cap
$5.52B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CHH
15.07
FND
26.6
Forward P/E
CHH
15.38
FND
21.24
P/B Ratio
CHH
29.99
FND
2.29
P/S Ratio
CHH
5.56
FND
1.18
EV/EBITDA
CHH
14.65
FND
14.2

Profitability

Gross Margin
CHH
90.65%
FND
44.84%
Operating Margin
CHH
45.0%
FND
4.6%
Profit Margin
CHH
37.73%
FND
4.45%
ROE
CHH
544.21%
FND
9.11%
ROA
CHH
10.42%
FND
3.21%

Growth

Revenue Growth
CHH
2.4%
FND
2.0%
Earnings Growth
CHH
-13.6%
FND
-18.2%

Financial Health

Debt/Equity
CHH
11.16
FND
0.83
Current Ratio
CHH
0.87
FND
1.33
Quick Ratio
CHH
0.57
FND
0.3

Dividends

Dividend Yield
CHH
0.97%
FND
--
Payout Ratio
CHH
14.56%
FND
0.0%

AI Verdict

CHH BEARISH

The company exhibits significant financial fragility, evidenced by a weak Piotroski F-Score of 3/9 and a precarious Debt/Equity ratio of 11.16. Valuation is severely stretched, with the current price of $119.07 trading at a massive premium to both the Graham Number ($26.45) and the Intrinsic Value ($54.81). While profit margins remain high, negative earnings growth (-13.6% YoY) and poor liquidity (Current Ratio 0.87) signal operational distress. Combined with bearish insider activity and a 0/100 technical trend, the risk-reward profile is highly unfavorable.

Strengths
Exceptionally high gross margins (90.65%)
Strong operating margins (45.00%)
High Return on Assets (10.42%)
Risks
Extreme leverage with a Debt/Equity ratio of 11.16
Liquidity risk indicated by a Current Ratio of 0.87 and Quick Ratio of 0.57
Negative earnings growth (-13.6% YoY and -16% Q/Q)
FND BEARISH

FND presents a concerning fundamental profile, characterized by a stable but mediocre Piotroski F-Score of 4/9 and a significant valuation gap, trading at $51.08 against a Graham Number of $31.07 and an Intrinsic Value of $13.44. The company is experiencing a severe growth crisis, with YoY earnings contracting by 18.2% and revenue growth stalling at 2%. Technical momentum is non-existent (0/100), and a very low quick ratio of 0.30 indicates potential short-term liquidity constraints. While analysts maintain a 'hold' rating with higher targets, the data suggests a company in a structural decline.

Strengths
Strong Gross Margin of 44.84% indicating good product pricing power
Consistent track record of beating earnings estimates (3 of last 4 quarters)
Manageable Debt/Equity ratio of 0.83, below the sector average of 1.53
Risks
Severe earnings contraction with YoY growth at -18.20%
Stagnant revenue growth (2.00%) suggesting market saturation or loss of demand
Critical liquidity risk evidenced by a Quick Ratio of 0.30

Compare Another Pair

CHH vs FND: Head-to-Head Comparison

This page compares Choice Hotels International, Inc. (CHH) and Floor & Decor Holdings, Inc. (FND) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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