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 $2.9B against $2.3B — 1.2× the size. Pebblebrook Hotel Trust has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 17.7×. Pebblebrook Hotel Trust grew revenue faster over the last twelve months: 2.76% against 2.10%. DiamondRock Hospitality Company has the higher net margin (14.1% vs −6.54%) and the higher return on invested capital (4.84% vs 0.69%). Both pay a dividend; DiamondRock Hospitality Company yields more (2.07% vs 0.19%). 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 17.68 n/m 28.97
P/S 2.50 1.57 1.57
P/B 1.86 0.98 1.22
Price to free cash flow 14.97 7.00 7.89
EV/EBITDA 12.36 16.71 11.96
EV/Sales 3.30 3.02 2.84
Earnings yield 5.65% (3.77%) 0.18%
Free cash flow yield 6.68% 14.29% 6.68%

Profitability

Metric DRH PEB Reit Hotel & Motel median
Gross margin 37.56% 25.90% 32.55%
Operating margin 16.63% 3.09% 9.93%
Net margin 14.11% (6.54%) 0.34%
Free cash flow margin 16.73% 22.49% 19.63%
Return on equity 10.37% (3.91%) 0.59%
Return on assets 5.19% (1.83%) 0.14%
Return on invested capital 4.84% 0.69% 2.34%

Growth

Metric DRH PEB Reit Hotel & Motel median
Revenue growth (TTM) 2.10% 2.76% 2.76%
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 0.71 0.86 0.80
Current ratio 1.96 1.38 1.15
Net debt to EBITDA 3.59 6.79 5.14

Dividend

Metric DRH PEB Reit Hotel & Motel median
Dividend yield 2.07% 0.19% 3.05%
Payout ratio 0.37 — 1.19

Size

Metric DRH PEB Reit Hotel & Motel median
Market cap 2.87b 2.32b 1.96b

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