Comparing InterContinental Hotels Group (IHG) & The Competition

InterContinental Hotels Group (NYSE: IHG) is one of 30 publicly-traded companies in the “Hotels & motels” industry, but how does it contrast to its peers? We will compare InterContinental Hotels Group to related businesses based on the strength of its earnings, valuation, risk, dividends, profitability, institutional ownership and analyst recommendations.

Institutional and Insider Ownership

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6.7% of InterContinental Hotels Group shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Hotels & motels” companies are owned by institutional investors. 19.0% of shares of all “Hotels & motels” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

InterContinental Hotels Group has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, InterContinental Hotels Group’s peers have a beta of 1.15, indicating that their average stock price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares InterContinental Hotels Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
InterContinental Hotels Group $1.78 billion $592.00 million 25.37
InterContinental Hotels Group Competitors $3.57 billion $470.05 million 184.05

InterContinental Hotels Group’s peers have higher revenue, but lower earnings than InterContinental Hotels Group. InterContinental Hotels Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

InterContinental Hotels Group pays an annual dividend of $1.67 per share and has a dividend yield of 2.7%. InterContinental Hotels Group pays out 68.7% of its earnings in the form of a dividend. As a group, “Hotels & motels” companies pay a dividend yield of 1.8% and pay out 48.0% of their earnings in the form of a dividend. InterContinental Hotels Group has raised its dividend for 5 consecutive years.

Profitability

This table compares InterContinental Hotels Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterContinental Hotels Group N/A N/A N/A
InterContinental Hotels Group Competitors 10.97% 12.75% 4.81%

Analyst Ratings

This is a breakdown of recent ratings for InterContinental Hotels Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterContinental Hotels Group 0 2 3 0 2.60
InterContinental Hotels Group Competitors 308 1443 2192 75 2.51

InterContinental Hotels Group presently has a consensus price target of $64.19, indicating a potential upside of 4.12%. As a group, “Hotels & motels” companies have a potential upside of 1.36%. Given InterContinental Hotels Group’s stronger consensus rating and higher probable upside, analysts clearly believe InterContinental Hotels Group is more favorable than its peers.

Summary

InterContinental Hotels Group peers beat InterContinental Hotels Group on 8 of the 14 factors compared.

InterContinental Hotels Group Company Profile

InterContinental Hotels Group PLC owns, manages, franchises, and leases hotels in the Americas, Europe, Asia, the Middle East, Africa, and Greater China. The company operates hotels, resorts, and restaurants under the InterContinental, Kimpton, Hotel Indigo, EVEN, HUALUXE, Crowne Plaza, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, Holiday Inn Resort, avid, Staybridge Suites, and Candlewood Suites brands. It also provides IHG Rewards Club, a hotel loyalty program. As of December 31, 2017, the company had 5,348 hotels with 798,075 rooms. InterContinental Hotels Group PLC was founded in 1967 and is headquartered in Denham, the United Kingdom.

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