Analyzing Host Hotels & Resorts (HST) & Chesapeake Lodging Trust (CHSP)
Host Hotels & Resorts (NYSE: HST) and Chesapeake Lodging Trust (NYSE:CHSP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
This is a summary of recent ratings and recommmendations for Host Hotels & Resorts and Chesapeake Lodging Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Host Hotels & Resorts||1||8||4||0||2.23|
|Chesapeake Lodging Trust||0||3||2||0||2.40|
Host Hotels & Resorts currently has a consensus price target of $18.25, suggesting a potential downside of 0.49%. Chesapeake Lodging Trust has a consensus price target of $26.50, suggesting a potential downside of 4.16%. Given Host Hotels & Resorts’ higher probable upside, research analysts clearly believe Host Hotels & Resorts is more favorable than Chesapeake Lodging Trust.
This table compares Host Hotels & Resorts and Chesapeake Lodging Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Host Hotels & Resorts||11.09%||8.47%||5.16%|
|Chesapeake Lodging Trust||10.77%||5.53%||3.19%|
Valuation & Earnings
This table compares Host Hotels & Resorts and Chesapeake Lodging Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Host Hotels & Resorts||$5.45 billion||2.49||$1.45 billion||$0.80||22.93|
|Chesapeake Lodging Trust||$606.99 million||2.69||$175.85 million||$0.97||28.51|
Host Hotels & Resorts has higher revenue and earnings than Chesapeake Lodging Trust. Host Hotels & Resorts is trading at a lower price-to-earnings ratio than Chesapeake Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.4%. Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.8%. Host Hotels & 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. Chesapeake Lodging Trust pays out 164.9% 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 & Resorts has increased its dividend for 6 consecutive years and Chesapeake Lodging Trust has increased its dividend for 5 consecutive years.
Institutional & Insider Ownership
98.5% of Chesapeake Lodging Trust shares are held by institutional investors. 1.7% of Host Hotels & Resorts shares are held by company insiders. Comparatively, 2.2% of Chesapeake Lodging Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk & Volatility
Host Hotels & Resorts has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Chesapeake Lodging Trust has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Host Hotels & Resorts beats Chesapeake Lodging Trust on 10 of the 17 factors compared between the two stocks.
Host Hotels & 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.
Chesapeake Lodging Trust Company Profile
Chesapeake Lodging Trust is a real estate investment trust. The Company is focused on investments primarily in upper-upscale hotels in various business and convention markets and, on a selective basis, select-service hotels in urban settings or other locations in the United States. The Company operates through the hotel ownership segment. The Company conducts its operations primarily though Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). As of February 17, 2017, the Company owned 22 hotels. As of February 17, 2017, the Company’s portfolio included Hyatt Regency Boston; Hilton Checkers Los Angeles; Boston Marriott Newton; Le Meridien San Francisco; Hotel Indigo San Diego Gaslamp Quarter; Courtyard Washington Capitol Hill/Navy Yard; Hotel Adagio San Francisco, Autograph Collection; Denver Marriott City Center; Hyatt Herald Square New York, and Ace Hotel and Theater Downtown Los Angeles. As of February 17, 2017, the Company’s hotels had 6,694 rooms.
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