DiamondRock Hospitality Company (DRH) vs RLJ Lodging Trust (RLJ)

DiamondRock Hospitality Company and RLJ Lodging Trust are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.6B against $1.7B — 1.5× the size. RLJ Lodging Trust has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 17.1×. RLJ Lodging Trust grew revenue faster over the last twelve months: 1.07% against 1.03%. DiamondRock Hospitality Company has the higher net margin (13.1% vs 0.18%) and the higher return on invested capital (4.62% vs 2.12%). Both pay a dividend; RLJ Lodging Trust yields more (3.02% vs 1.40%). Across the 21 metrics below, DiamondRock Hospitality Company leads on 11 and RLJ Lodging Trust on 10.

Valuation

Metric DRH RLJ Reit Hotel & Motel median
P/E 17.14 n/m 25.03
P/S 2.26 1.22 1.53
P/B 1.68 0.93 1.05
Price to free cash flow 13.27 7.25 7.25
EV/EBITDA 11.74 9.76 11.74
EV/Sales 3.10 2.46 2.64
Earnings yield 5.84% 0.00% (0.39%)
Free cash flow yield 7.53% 13.78% 7.53%

Profitability

Metric DRH RLJ Reit Hotel & Motel median
Gross margin 37.37% 61.99% 37.37%
Operating margin 16.16% 9.53% 9.53%
Net margin 13.09% 0.18% (0.66%)
Free cash flow margin 17.01% 16.75% 17.01%
Return on equity 9.56% 0.13% 0.53%
Return on assets 4.86% 0.05% (0.26%)
Return on invested capital 4.62% 2.12% 2.16%

Growth

Metric DRH RLJ Reit Hotel & Motel median
Revenue growth (TTM) 1.03% 1.07% 1.17%
EPS growth (last fiscal year) 144.44% (96.30%) —
Revenue growth, 5-year CAGR 30.20% 23.33% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH RLJ Reit Hotel & Motel median
Debt to equity 0.72 1.24 0.83
Current ratio 1.87 5.71 1.34
Net debt to EBITDA 3.59 5.14 5.14

Dividend

Metric DRH RLJ Reit Hotel & Motel median
Dividend yield 1.40% 3.02% 3.10%
Payout ratio 0.30 0.81 0.48

Size

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

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