Contrasting Park Hotels & Resorts (PK) & Ashford Hospitality Prime (AHP)

Park Hotels & Resorts (NYSE: PK) and Ashford Hospitality Prime (NYSE:AHP) are both financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current recommendations for Park Hotels & Resorts and Ashford Hospitality Prime, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Hotels & Resorts 0 7 8 0 2.53
Ashford Hospitality Prime 0 3 4 0 2.57

Park Hotels & Resorts currently has a consensus target price of $35.62, suggesting a potential upside of 24.23%. Ashford Hospitality Prime has a consensus target price of $13.40, suggesting a potential upside of 37.58%. Given Ashford Hospitality Prime’s stronger consensus rating and higher possible upside, analysts plainly believe Ashford Hospitality Prime is more favorable than Park Hotels & Resorts.

Dividends

Park Hotels & Resorts pays an annual dividend of $2.20 per share and has a dividend yield of 7.7%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.6%. Park Hotels & Resorts pays out 18.3% of its earnings in the form of a dividend. Ashford Hospitality Prime pays out -228.6% 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. Ashford Hospitality Prime has raised its dividend for 2 consecutive years.

Profitability

This table compares Park Hotels & Resorts and Ashford Hospitality Prime’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Hotels & Resorts 93.04% 46.66% 25.91%
Ashford Hospitality Prime -0.36% -0.43% -0.10%

Earnings & Valuation

This table compares Park Hotels & Resorts and Ashford Hospitality Prime’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park Hotels & Resorts $2.73 billion 2.26 $133.00 million $12.01 2.39
Ashford Hospitality Prime $405.86 million 0.77 $19.31 million ($0.28) -34.78

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

Institutional & Insider Ownership

99.1% of Park Hotels & Resorts shares are owned by institutional investors. Comparatively, 64.6% of Ashford Hospitality Prime shares are owned by institutional investors. 0.3% of Park Hotels & Resorts shares are owned by insiders. Comparatively, 10.0% of Ashford Hospitality Prime shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Park Hotels & Resorts beats Ashford Hospitality Prime on 11 of the 16 factors compared between the two stocks.

About Park Hotels & Resorts

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.

About Ashford Hospitality Prime

Ashford Hospitality Prime, Inc. invests in high revenue per available room (RevPAR), luxury hotels and resorts. The Company conducts its business and owns all of its assets through its operating partnership, Ashford Hospitality Prime Limited Partnership (Ashford Prime OP). The Company operates in the direct hotel investment segment of the hotel lodging industry. As of February 24, 2017, it owned interests in 11 hotel properties in six states, the District of Columbia and St. Thomas, the United States Virgin Islands with 3,702 total rooms, or 3,467 net rooms, excluding those attributable to its joint venture partner. The hotel properties in its portfolio are mainly located in the Unites States urban markets. The Company owns nine of its hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity. All of the hotels in the Company’s portfolio are asset-managed by Ashford Hospitality Advisors LLC.

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