I'm assuming that Home2 is a lower-end brand, as it is the only Hilton property for which you only earn 5 points/$ spent. Could be missing something, though.
Home2 is a lower brand than Homewood. Home2 is to Homewood as Hampton is to Full Hilton's. They offer less on the services and the rooms are not as spacious. However it is a wonderful value if you are traveling as you have the flexability to cook in your "suite" without having to pay an arm and a leg (yes Homewood Suites tend to get real pricey without much effort). After my stay there last week, I would definitely stay at a Home2 again, just as a great value in cost.
So do these compare with Priority Club's Candlewoods? While I don't actually cook in the room, I find that the Candlewoods even at half-earning are a great value for when I get into an airport on a Thursday or Friday night and just want someplace to crash for six hours before heading out on the road. When I know I'm going to be tired enough that the bed quality won't matter so much, the Candlewoods have taken a lot of my business away from nearby overpriced Hamptons.