GHG vs. MAR: Which Stock Should Value Investors Buy Now?
Investors with an interest in Hotels and Motels stocks have likely encountered both GreenTree Hospitality Group Ltd. Sponsored ADR (GHG) and Marriott International (MAR). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, GreenTree Hospitality Group Ltd. Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Marriott International has a Zacks Rank of #4 (Sell). Investors should feel comfortable knowing that GHG likely has seen a stronger improvement to its earnings outlook than MAR has recently. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GHG currently has a forward P/E ratio of 9.12, while MAR has a forward P/E of 22.68. We also note that GHG has a PEG ratio of 0.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MAR currently has a PEG ratio of 0.61.
Another notable valuation metric for GHG is its P/B ratio of 1.97. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, MAR has a P/B of 50.33.
These metrics, and several others, help GHG earn a Value grade of A, while MAR has been given a Value grade of C.
GHG is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that GHG is likely the superior value option right now.
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GreenTree Hospitality Group Ltd. Sponsored ADR (GHG) : Free Stock Analysis Report
Marriott International, Inc. (MAR) : Free Stock Analysis Report
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