DiamondRock Hospitality Company (DRH) vs Pebblebrook Hotel Trust (PEB)

DiamondRock Hospitality Company and Pebblebrook Hotel Trust are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.6B against $2.1B — 1.2× the size. Pebblebrook Hotel Trust has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 17.1×. Pebblebrook Hotel Trust grew revenue faster over the last twelve months: 2.08% against 1.03%. DiamondRock Hospitality Company has the higher net margin (13.1% vs −5.24%) and the higher return on invested capital (4.62% vs 0.92%). Both pay a dividend; DiamondRock Hospitality Company yields more (1.40% vs 0.26%). Across the 21 metrics below, DiamondRock Hospitality Company leads on 14 and Pebblebrook Hotel Trust on 7.

Valuation

Metric DRH PEB Reit Hotel & Motel median
P/E 17.14 n/m 25.03
P/S 2.26 1.38 1.53
P/B 1.68 0.83 1.05
Price to free cash flow 13.27 6.38 7.25
EV/EBITDA 11.74 13.34 11.74
EV/Sales 3.10 2.62 2.64
Earnings yield 5.84% (3.69%) (0.39%)
Free cash flow yield 7.53% 15.68% 7.53%

Profitability

Metric DRH PEB Reit Hotel & Motel median
Gross margin 37.37% 25.34% 37.37%
Operating margin 16.16% 4.26% 9.53%
Net margin 13.09% (5.24%) (0.66%)
Free cash flow margin 17.01% 21.70% 17.01%
Return on equity 9.56% (3.00%) 0.53%
Return on assets 4.86% (1.44%) (0.26%)
Return on invested capital 4.62% 0.92% 2.16%

Growth

Metric DRH PEB Reit Hotel & Motel median
Revenue growth (TTM) 1.03% 2.08% 1.17%
EPS growth (last fiscal year) 144.44% (130.77%) —
Revenue growth, 5-year CAGR 30.20% 27.21% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH PEB Reit Hotel & Motel median
Debt to equity 0.72 0.83 0.83
Current ratio 1.87 1.34 1.34
Net debt to EBITDA 3.59 6.79 5.14

Dividend

Metric DRH PEB Reit Hotel & Motel median
Dividend yield 1.40% 0.26% 3.10%
Payout ratio 0.30 — 0.48

Size

Metric DRH PEB Reit Hotel & Motel median
Market cap 2.55b 2.10b 1.70b

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