Head-To-Head Survey: DiamondRock Hospitality (NYSE:DRH) versus Healthpeak Properties (NYSE:DOC)

DiamondRock Hospitality (NYSE:DRH) and Healthpeak Properties (NYSE:DOC) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Volatility & Risk

DiamondRock Hospitality has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Healthpeak Properties has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Valuation and Earnings

This table compares DiamondRock Hospitality and Healthpeak Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DiamondRock Hospitality	$1.12 billion	1.85	$48.05 million	$0.44	23.05
Healthpeak Properties	$2.82 billion	4.04	$71.35 million	$0.10	164.15

Healthpeak Properties has higher revenue and earnings than DiamondRock Hospitality. DiamondRock Hospitality is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are held by institutional investors. 0.9% of DiamondRock Hospitality shares are held by company insiders. Comparatively, 0.2% of Healthpeak Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for DiamondRock Hospitality and Healthpeak Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DiamondRock Hospitality	0	6	4	0	2.40
Healthpeak Properties	0	9	6	0	2.40

DiamondRock Hospitality presently has a consensus target price of $10.36, suggesting a potential upside of 2.18%. Healthpeak Properties has a consensus target price of $19.04, suggesting a potential upside of 15.97%. Given Healthpeak Properties’ higher possible upside, analysts clearly believe Healthpeak Properties is more favorable than DiamondRock Hospitality.

Dividends

DiamondRock Hospitality pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 7.4%. DiamondRock Hospitality pays out 81.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Healthpeak Properties pays out 1,220.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DiamondRock Hospitality has raised its dividend for 1 consecutive years.

Profitability

This table compares DiamondRock Hospitality and Healthpeak Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DiamondRock Hospitality	5.69%	4.04%	2.05%
Healthpeak Properties	2.52%	0.84%	0.36%

Summary

Healthpeak Properties beats DiamondRock Hospitality on 9 of the 16 factors compared between the two stocks.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.