Host Hotels and Resorts (NYSE: HST) and Pebblebrook Hotel Trust (NYSE:PEB) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
This table compares Host Hotels and Resorts and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Host Hotels and Resorts||11.11%||8.44%||5.11%|
|Pebblebrook Hotel Trust||12.98%||6.63%||3.78%|
Host Hotels and Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Pebblebrook Hotel Trust pays an annual dividend of $1.52 per share and has a dividend yield of 4.0%. Host Hotels and Resorts 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. Pebblebrook Hotel Trust pays out 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels and Resorts has raised its dividend for 6 consecutive years and Pebblebrook Hotel Trust has raised its dividend for 4 consecutive years.
Valuation & Earnings
This table compares Host Hotels and Resorts and Pebblebrook Hotel Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Host Hotels and Resorts||$5.43 billion||2.71||$762.00 million||$0.80||24.81|
|Pebblebrook Hotel Trust||$816.42 million||3.18||$73.70 million||$1.29||29.23|
Host Hotels and Resorts has higher revenue and earnings than Pebblebrook Hotel Trust. Host Hotels and Resorts is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Host Hotels and Resorts has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
This is a summary of recent ratings for Host Hotels and Resorts and Pebblebrook Hotel Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Host Hotels and Resorts||1||8||7||0||2.38|
|Pebblebrook Hotel Trust||2||3||5||0||2.30|
Host Hotels and Resorts currently has a consensus target price of $20.32, suggesting a potential upside of 2.36%. Pebblebrook Hotel Trust has a consensus target price of $35.81, suggesting a potential downside of 5.03%. Given Host Hotels and Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Host Hotels and Resorts is more favorable than Pebblebrook Hotel Trust.
Host Hotels and Resorts beats Pebblebrook Hotel Trust on 10 of the 15 factors compared between the two stocks.
Host Hotels and Resorts Company Profile
Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). The Company operates through hotel ownership segment. The Company operates through hotel ownership segment. The Company owned properties and conducted operations through Host Hotels & Resorts, L.P. (Host L.P.), of which Host Inc. was the general partner and of which it held approximately 99% of the partnership interests (OP units), as of December 31, 2016. As of February 20, 2017, its lodging portfolio consisted of 96 primarily luxury and upper-upscale hotels containing approximately 53,500 rooms, with the majority located in the United States, and with seven of the properties located outside of the United States in Australia, Brazil, Canada and Mexico. In addition, it owns non-controlling interests in two international joint ventures: approximately a 33% interest in a joint venture in Europe, and a 9% indirect interest, through joint ventures in India.
Pebblebrook Hotel Trust Company Profile
Pebblebrook Hotel Trust is an internally managed hotel investment company. The Company is a real estate investment trust (REIT) that acquires and invests in hotel properties located primarily in cities of the United States. As of December 31, 2016, the Company owned 29 hotels with a total of 7,219 guest rooms. The hotels are located in the markets: Atlanta (Buckhead), Georgia; Boston, Massachusetts; Miami (Coral Gables), Florida; Minneapolis, Minnesota; Naples, Florida; Nashville, Tennessee; New York, New York; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Monica, California; Seattle, Washington; Stevenson, Washington; Washington, D.C.; West Hollywood, California, and Los Angeles (Beverly Hills), California. The Company’s assets are held by, and all of the operations are conducted through, Pebblebrook Hotel, L.P. (the Operating Partnership).
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