Host Hotels & Resorts (HST) vs. The Competition Critical Contrast

Host Hotels & Resorts (NASDAQ:HST) is one of 24 public companies in the “Hotel & Resort REITs” industry, but how does it contrast to its peers? We will compare Host Hotels & Resorts to related companies based on the strength of its institutional ownership, valuation, risk, dividends, earnings, profitability and analyst recommendations.

Profitability

This table compares Host Hotels & Resorts and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	15.01%	14.33%	7.17%
Host Hotels & Resorts Competitors	0.48%	11.24%	1.31%

Institutional and Insider Ownership

98.5% of Host Hotels & Resorts shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Hotel & Resort REITs” companies are owned by institutional investors. 1.5% of Host Hotels & Resorts shares are owned by insiders. Comparatively, 8.9% of shares of all “Hotel & Resort REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Host Hotels & Resorts pays out 58.4% of its earnings in the form of a dividend. As a group, “Hotel & Resort REITs” companies pay a dividend yield of 3.8% and pay out -34.6% of their earnings in the form of a dividend. Host Hotels & Resorts has increased its dividend for 2 consecutive years. Host Hotels & Resorts lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

This table compares Host Hotels & Resorts and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Host Hotels & Resorts	$6.24 billion	$765.00 million	18.68
Host Hotels & Resorts Competitors	$1.40 billion	$29.80 million	50.09

Host Hotels & Resorts has higher revenue and earnings than its peers. Host Hotels & Resorts is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Host Hotels & Resorts has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts’ peers have a beta of 0.97, indicating that their average share price is 3% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Host Hotels & Resorts and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	0	5	8	1	2.71
Host Hotels & Resorts Competitors	540	1749	1293	33	2.23

Host Hotels & Resorts presently has a consensus target price of $25.55, indicating a potential downside of 0.14%. As a group, “Hotel & Resort REITs” companies have a potential downside of 2.63%. Given Host Hotels & Resorts’ stronger consensus rating and higher probable upside, equities analysts clearly believe Host Hotels & Resorts is more favorable than its peers.

Summary

Host Hotels & Resorts beats its peers on 11 of the 15 factors compared.

Host Hotels & Resorts Company Profile

Host Hotels & Resorts is a real estate investment trust that owns a portfolio of luxury and upper-upscale hotels and resorts. Its properties serve business and leisure travelers and are located primarily in the United States, with additional properties in international markets. The company’s hotels are operated under a range of well-known brands, including Marriott, Hilton, Hyatt and Four Seasons. Host generally relies on brand companies and other third-party operators to manage its properties, while focusing on hotel ownership and real estate investment.