Relative Risk vs. Return Landscape
If you would invest 4,465
in Choice Hotels International Inc on April 21, 2013
and sell it today you would lose (374.00)
from holding Choice Hotels International Inc or give up 8.38%
of portfolio value over 30
days. Choice Hotels International Inc is generating negative expected returns assuming volatility of 2.56%
on return distribution over 30 days investment horizon. In other words, 33% of equities are less volatile than the company and above 99% of equities are expected to generate higher returns over the next 30 days.
Daily Expected Return (%)
Considering 30-days investment horizon, Choice Hotels International Inc is expected to under-perform the market. In addition to that, the company is 4.65 times more volatile than its market benchmark. It trades about -0.14 of its total potential returns per unit of risk. The S&P 500 is currently generating roughly 0.56 per unit of volatility.
Choice Operating Margin
Based on recorded statements Choice Hotels International Inc has Operating Margin of 28.8%. This is 972.73% lower than that of Services sector, and 276.47% higher than that of Lodging
industry, The Operating Margin for all stocks is 925.21% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Choice Return On Asset vs Profit Margin
Choice Hotels International Inc is rated second
in return on asset category among related companies. It is rated fourth
in profit margin category among related companies fabricating about 0.67
of Profit Margin per Return On Asset. The ratio of Return On Asset to Profit Margin for Choice Hotels International Inc is roughly 1.49