DiamondRock Hospitality Company (DRH) vs Sunstone Hotel Investors, Inc. (SHO)

DiamondRock Hospitality Company and Sunstone Hotel Investors, Inc. are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.7B against $2.2B — 1.2× the size. DiamondRock Hospitality Company trades at the lower P/E: 18.4× against 53.8×. Sunstone Hotel Investors, Inc. grew revenue faster over the last twelve months: 7.28% against 1.03%. DiamondRock Hospitality Company has the higher net margin (13.1% vs 4.21%) and the higher return on invested capital (4.62% vs 2.16%). Both pay a dividend; Sunstone Hotel Investors, Inc. yields more (3.04% vs 2.16%). Across the 22 metrics below, DiamondRock Hospitality Company leads on 12 and Sunstone Hotel Investors, Inc. on 10.

Valuation

Metric DRH SHO Reit Hotel & Motel median
P/E 18.38 53.77 26.14
P/S 2.42 2.19 1.47
P/B 1.80 1.34 1.05
Price to free cash flow 14.24 21.05 7.55
EV/EBITDA 12.36 12.25 12.25
EV/Sales 3.26 2.95 2.83
Earnings yield 5.44% 1.86% (0.37%)
Free cash flow yield 7.02% 4.75% 7.02%

Profitability

Metric DRH SHO Reit Hotel & Motel median
Gross margin 37.37% 63.41% 37.37%
Operating margin 16.16% 9.12% 9.53%
Net margin 13.09% 4.21% (0.66%)
Free cash flow margin 17.01% 9.65% 17.01%
Return on equity 9.56% 2.53% 0.53%
Return on assets 4.86% 1.40% (0.26%)
Return on invested capital 4.62% 2.16% 2.16%

Growth

Metric DRH SHO Reit Hotel & Motel median
Revenue growth (TTM) 1.03% 7.28% 1.17%
EPS growth (last fiscal year) 144.44% (71.43%) (16.85%)
Revenue growth, 5-year CAGR 30.20% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH SHO Reit Hotel & Motel median
Debt to equity 0.72 0.51 0.83
Current ratio 1.87 3.84 1.34
Net debt to EBITDA 3.59 3.29 5.14

Dividend

Metric DRH SHO Reit Hotel & Motel median
Dividend yield 2.16% 3.04% 3.15%
Payout ratio 0.40 1.64 1.24

Size

Metric DRH SHO Reit Hotel & Motel median
Market cap 2.73b 2.21b 1.78b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack