Peakstone Realty Trust (NYSE:PKST) vs. Park Hotels & Resorts (NYSE:PK) Financial Contrast

Park Hotels & Resorts (NYSE:PK) and Peakstone Realty Trust (NYSE:PKST) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.

Valuation and Earnings

This table compares Park Hotels & Resorts and Peakstone Realty Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Hotels & Resorts	$2.54 billion	0.88	-$283.00 million	($1.43)	-7.80
Peakstone Realty Trust	$105.98 million	7.31	-$307.71 million	($8.39)	-2.49

Park Hotels & Resorts has higher revenue and earnings than Peakstone Realty Trust. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Peakstone Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Park Hotels & Resorts and Peakstone Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Hotels & Resorts	3	8	2	0	1.92
Peakstone Realty Trust	1	3	0	0	1.75

Park Hotels & Resorts currently has a consensus price target of $11.27, suggesting a potential upside of 1.01%. Peakstone Realty Trust has a consensus price target of $21.00, suggesting a potential upside of 0.72%. Given Park Hotels & Resorts’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Park Hotels & Resorts is more favorable than Peakstone Realty Trust.

Risk & Volatility

Park Hotels & Resorts has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Peakstone Realty Trust has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Dividends

Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 9.0%. Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Park Hotels & Resorts pays out -69.9% of its earnings in the form of a dividend. Peakstone Realty Trust pays out -4.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Park Hotels & Resorts has increased its dividend for 1 consecutive years and Peakstone Realty Trust has increased its dividend for 1 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Park Hotels & Resorts and Peakstone Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Hotels & Resorts	-11.14%	-8.56%	-3.30%
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%

Insider and Institutional Ownership

92.7% of Park Hotels & Resorts shares are held by institutional investors. Comparatively, 39.0% of Peakstone Realty Trust shares are held by institutional investors. 1.9% of Park Hotels & Resorts shares are held by company insiders. Comparatively, 0.8% of Peakstone Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Park Hotels & Resorts beats Peakstone Realty Trust on 13 of the 16 factors compared between the two stocks.

About Park Hotels & Resorts

Park Hotels & Resorts, Inc. operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio. The company was founded by Conrad Hilton in 1919 and is headquartered in Tysons, VA.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.