Chesapeake Lodging Trust (NYSE: CHSP) and Park Hotels & Resorts (NYSE:PK) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Institutional and Insider Ownership
98.9% of Chesapeake Lodging Trust shares are owned by institutional investors. Comparatively, 97.3% of Park Hotels & Resorts shares are owned by institutional investors. 2.5% of Chesapeake Lodging Trust shares are owned by insiders. Comparatively, 0.3% of Park Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Chesapeake Lodging Trust and Park Hotels & Resorts’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Lodging Trust||$619.70 million||2.79||$76.70 million||$0.82||35.02|
|Park Hotels & Resorts||$2.73 billion||2.30||$133.00 million||$12.01||2.43|
Park Hotels & Resorts has higher revenue and earnings than Chesapeake Lodging Trust. Park 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.
Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.6%. Park Hotels & Resorts pays an annual dividend of $1.72 per share and has a dividend yield of 5.9%. Chesapeake Lodging Trust pays out 195.1% 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 pays out 14.3% of its earnings in the form of a dividend. Chesapeake Lodging Trust has increased its dividend for 5 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current ratings and recommmendations for Chesapeake Lodging Trust and Park Hotels & Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Lodging Trust||1||4||2||0||2.14|
|Park Hotels & Resorts||0||8||7||0||2.47|
Chesapeake Lodging Trust currently has a consensus price target of $25.80, indicating a potential downside of 10.17%. Park Hotels & Resorts has a consensus price target of $35.62, indicating a potential upside of 22.22%. Given Park Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Park Hotels & Resorts is more favorable than Chesapeake Lodging Trust.
This table compares Chesapeake Lodging Trust and Park Hotels & Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Lodging Trust||9.71%||5.11%||2.87%|
|Park Hotels & Resorts||93.04%||46.66%||25.91%|
Park Hotels & Resorts beats Chesapeake Lodging Trust on 11 of the 15 factors compared between the two stocks.
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.
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.
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