Financial Analysis: Park Hotels & Resorts (PK) vs. Pebblebrook Hotel Trust (PEB)
Park Hotels & Resorts (NYSE: PK) and Pebblebrook Hotel Trust (NYSE:PEB) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Valuation and Earnings
This table compares Park Hotels & Resorts and Pebblebrook Hotel Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Park Hotels & Resorts||$2.78 billion||2.10||$732.00 million||N/A||N/A|
|Pebblebrook Hotel Trust||$796.77 million||3.03||$242.63 million||$0.30||116.84|
Park Hotels & Resorts has higher revenue and earnings than Pebblebrook Hotel Trust.
This table compares Park Hotels & Resorts and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Park Hotels & Resorts||N/A||50.66%||25.50%|
|Pebblebrook Hotel Trust||5.09%||2.59%||1.45%|
Insider & Institutional Ownership
97.2% of Park Hotels & Resorts shares are held by institutional investors. 0.3% of Park Hotels & Resorts shares are held by insiders. Comparatively, 2.0% of Pebblebrook Hotel Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Park Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 6.3%. Pebblebrook Hotel Trust pays an annual dividend of $1.52 per share and has a dividend yield of 4.3%. Pebblebrook Hotel Trust pays out 506.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts has raised its dividend for 4 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current recommendations and price targets for Park Hotels & Resorts and Pebblebrook Hotel Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Park Hotels & Resorts||0||8||7||0||2.47|
|Pebblebrook Hotel Trust||2||3||5||0||2.30|
Park Hotels & Resorts currently has a consensus price target of $35.54, suggesting a potential upside of 30.70%. Pebblebrook Hotel Trust has a consensus price target of $34.31, suggesting a potential downside of 2.10%. Given Park Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Park Hotels & Resorts is more favorable than Pebblebrook Hotel Trust.
Park Hotels & Resorts beats Pebblebrook Hotel Trust on 11 of the 15 factors compared between the two stocks.
Park Hotels & Resorts Company Profile
Park Hotels & Resorts Inc. is a lodging real estate company. The Company has a portfolio of hotels and resorts. The Company operates through ownership segment, which includes all of its hotel properties. As of December 31, 2016, the Company’s portfolio consisted of 67 hotels and resorts with over 35,000 rooms located in the United States and international markets. Its portfolio includes hotels in areas, such as New York City, Washington, D.C., Chicago, San Francisco and London; resorts in leisure destinations, including Hawaii, Orlando and Key West, and a range of properties adjacent to gateway airports, such as Los Angeles International, Chicago O’Hare, Boston Logan and Miami Airport, and select suburban locations. The Company’s brand affiliations include Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Hotels & Resorts, Hilaton Garden Inn, Curio – A Collection by Hilton, and Waldorf Astoria Hotels & Resorts.
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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