Analyzing Jollibee Foods (OTCMKTS:JBFCY) and GreenTree Hospitality Group (NYSE:GHG)

GreenTree Hospitality Group (NYSE:GHG) and Jollibee Foods (OTCMKTS:JBFCY) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Dividends

GreenTree Hospitality Group pays an annual dividend of $0.05 per share and has a dividend yield of 5.2%. Jollibee Foods pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. GreenTree Hospitality Group pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Jollibee Foods pays out 15.5% of its earnings in the form of a dividend.

Profitability

This table compares GreenTree Hospitality Group and Jollibee Foods’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GreenTree Hospitality Group	4.14%	2.49%	0.84%
Jollibee Foods	3.16%	14.04%	3.55%

Insider and Institutional Ownership

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

Earnings & Valuation

This table compares GreenTree Hospitality Group and Jollibee Foods”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GreenTree Hospitality Group	$156.92 million	0.62	$23.85 million	$0.05	19.22
Jollibee Foods	$5.31 billion	0.47	$189.17 million	$0.58	15.22

Jollibee Foods has higher revenue and earnings than GreenTree Hospitality Group. Jollibee Foods is trading at a lower price-to-earnings ratio than GreenTree Hospitality Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for GreenTree Hospitality Group and Jollibee Foods, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GreenTree Hospitality Group	1	0	0	0	1.00
Jollibee Foods	0	1	0	0	2.00

Summary

Jollibee Foods beats GreenTree Hospitality Group on 7 of the 13 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 Jollibee Foods

Jollibee Foods Corporation develops, operates, and franchises quick service restaurants. The company operates quick-service restaurants under the Jollibee, Chowking, Greenwich, Red Ribbon, Yong He King, Hong Zhuang Yuan, Mang Inasal, Burger King, Highlands Coffee, PHO24, Smashburger, Tim Ho Wan, Tortazo, The Coffee Bean & Tea Leaf, Yoshinoya, Milksha, and Panda Express names in the Philippines, the United States, Canada, the People's Republic of China, the United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi Arabia, the United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia, South Korea, Australia, and India. It also offers property leasing, manufacturing, digital printing, advertising, financial accounting, human resources, and logistics services. The company was incorporated in 1978 and is based in Pasig, the Philippines.