Comparing Park Hotels & Resorts (NYSE:PK) & Douglas Emmett (NYSE:DEI)

Park Hotels & Resorts (NYSE:PK) and Douglas Emmett (NYSE:DEI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.

Valuation and Earnings

This table compares Park Hotels & Resorts and Douglas Emmett”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Hotels & Resorts	$2.60 billion	0.86	$212.00 million	($0.07)	-160.07
Douglas Emmett	$1.00 billion	1.69	$16.27 million	$0.09	112.50

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

Insider and Institutional Ownership

92.7% of Park Hotels & Resorts shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 1.9% of Park Hotels & Resorts shares are held by company insiders. Comparatively, 15.1% of Douglas Emmett shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Park Hotels & Resorts and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Hotels & Resorts	-0.47%	-1.25%	-0.48%
Douglas Emmett	1.62%	0.46%	0.17%

Analyst Ratings

This is a breakdown of recent recommendations for Park Hotels & Resorts and Douglas Emmett, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Hotels & Resorts	3	8	2	0	1.92
Douglas Emmett	1	6	2	0	2.11

Park Hotels & Resorts presently has a consensus price target of $11.27, suggesting a potential upside of 0.60%. Douglas Emmett has a consensus price target of $14.63, suggesting a potential upside of 44.44%. Given Douglas Emmett’s stronger consensus rating and higher possible upside, analysts plainly believe Douglas Emmett is more favorable than Park Hotels & Resorts.

Dividends

Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 8.9%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.5%. Park Hotels & Resorts pays out -1,428.6% of its earnings in the form of a dividend. Douglas Emmett pays out 844.4% 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 has raised its dividend for 1 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Park Hotels & Resorts has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Summary

Douglas Emmett beats Park Hotels & Resorts on 10 of the 16 factors compared between the two stocks.

About Park Hotels & Resorts

Park Hotels & Resorts, Inc. operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio. The company was founded by Conrad Hilton in 1919 and is headquartered in Tysons, VA.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.