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 $2.7B against $2.2B — 1.3× the size. Pebblebrook Hotel Trust has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 18.4×. 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 (2.16% vs 0.21%). 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 18.38 n/m 26.14
P/S 2.42 1.46 1.47
P/B 1.80 0.87 1.05
Price to free cash flow 14.24 6.75 7.55
EV/EBITDA 12.36 14.93 12.25
EV/Sales 3.26 2.93 2.83
Earnings yield 5.44% (3.49%) (0.37%)
Free cash flow yield 7.02% 14.82% 7.02%

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%) (16.85%)
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 2.16% 0.21% 3.15%
Payout ratio 0.40 — 1.24

Size

Metric DRH PEB Reit Hotel & Motel median
Market cap 2.73b 2.18b 1.78b

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