DiamondRock Hospitality Company (DRH) vs Summit Hotel Properties, Inc. (INN)

DiamondRock Hospitality Company and Summit Hotel Properties, Inc. are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.9B against $859.8M — 3.4× the size. Summit Hotel Properties, Inc. has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 19.9×. Summit Hotel Properties, Inc. grew revenue faster over the last twelve months: 1.24% against 1.03%. DiamondRock Hospitality Company has the higher net margin (13.1% vs −3.24%) and the higher return on invested capital (4.62% vs 1.64%). Both pay a dividend; Summit Hotel Properties, Inc. yields more (5.63% vs 2.00%). Across the 21 metrics below, DiamondRock Hospitality Company leads on 12 and Summit Hotel Properties, Inc. on 9.

Valuation

Metric DRH INN Reit Hotel & Motel median
P/E 19.86 n/m 28.25
P/S 2.62 1.01 1.63
P/B 1.95 0.62 1.11
Price to free cash flow 15.38 5.23 8.28
EV/EBITDA 13.10 9.34 13.09
EV/Sales 3.46 2.82 2.84
Earnings yield 5.03% (3.24%) (0.33%)
Free cash flow yield 6.50% 19.13% 6.50%

Profitability

Metric DRH INN Reit Hotel & Motel median
Gross margin 37.37% 33.34% 37.37%
Operating margin 16.16% 8.99% 9.53%
Net margin 13.09% (3.24%) (0.66%)
Free cash flow margin 17.01% 19.33% 17.01%
Return on equity 9.56% (1.93%) 0.53%
Return on assets 4.86% (0.85%) (0.26%)
Return on invested capital 4.62% 1.64% 2.16%

Growth

Metric DRH INN Reit Hotel & Motel median
Revenue growth (TTM) 1.03% 1.24% 1.17%
EPS growth (last fiscal year) 144.44% (200.00%) (16.85%)
Revenue growth, 5-year CAGR 30.20% 25.48% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH INN Reit Hotel & Motel median
Debt to equity 0.72 1.15 0.86
Current ratio 1.87 0.71 1.38
Net debt to EBITDA 3.59 6.09 5.14

Dividend

Metric DRH INN Reit Hotel & Motel median
Dividend yield 2.00% 5.63% 3.00%
Payout ratio 0.40 — 1.24

Size

Metric DRH INN Reit Hotel & Motel median
Market cap 2.92b 859.76m 1.93b

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