Host Hotels and Resorts (NYSE: HST) and Strategic Hotels and Resorts (NYSE:BEE) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Valuation and Earnings

This table compares Host Hotels and Resorts and Strategic Hotels and Resorts’ gross 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 2.70 $762.00 million $0.80 24.73
Strategic Hotels and Resorts N/A N/A N/A $0.17 N/A

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

Analyst Recommendations

This is a summary of current ratings for Host Hotels and Resorts and Strategic Hotels and Resorts, 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
Strategic Hotels and Resorts 0 0 0 0 N/A

Host Hotels and Resorts presently has a consensus target price of $20.32, suggesting a potential upside of 2.72%.

Dividends

Host Hotels and Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.0%. Strategic Hotels and Resorts does not pay a dividend. 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. Strategic Hotels and Resorts has increased its dividend for 6 consecutive years.

Profitability

This table compares Host Hotels and Resorts and Strategic Hotels and Resorts’ 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%
Strategic Hotels and Resorts 6.40% 5.76% 2.43%

Summary

Host Hotels and Resorts beats Strategic Hotels and Resorts on 7 of the 9 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.

Strategic Hotels and Resorts Company Profile

Strategic Hotels & Resorts, Inc. (SHR) is a self-administered and self-managed real estate investment trust (REIT). The Company acquires and asset manages hotels. The Company owns land held for development including 50.7 acres of oceanfront land in Nayarit, Mexico; 13.8 acres of land in Scottsdale, Arizona adjacent to its Four Seasons Resort Scottsdale at Troon North, and a 20,000 square-foot oceanfront land parcel in Santa Monica, California adjacent to its Loews Santa Monica Beach Hotel. The Company’s hotels are operated under the brands of Fairmont, Four Seasons, Hyatt, InterContinental, JW Marriott, Loews, Marriott, Montage, Ritz-Carlton and Westin. The Hotel del Coronado is operated by a specialty management company, KSL Resorts.

Receive News & Ratings for Host Hotels and Resorts Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Host Hotels and Resorts and related companies with MarketBeat.com's FREE daily email newsletter.