DiamondRock Hospitality Company (DRH) vs Service Properties Trust (SVC)

DiamondRock Hospitality Company and Service Properties Trust are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.9B against $712.3M — 4.0× the size. Service Properties Trust has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 17.7×. DiamondRock Hospitality Company grew revenue faster over the last twelve months: 2.10% against −15.6%. DiamondRock Hospitality Company has the higher net margin (14.1% vs −29.3%) and the higher return on invested capital (4.84% vs −2.57%). Both pay a dividend; Service Properties Trust yields more (3.83% vs 2.07%). Across the 21 metrics below, DiamondRock Hospitality Company leads on 13 and Service Properties Trust on 8.

Valuation

Metric DRH SVC Reit Hotel & Motel median
P/E 17.68 n/m 28.97
P/S 2.50 0.43 1.57
P/B 1.86 0.95 1.22
Price to free cash flow 14.97 1.41 7.89
EV/EBITDA 12.36 8.27 11.96
EV/Sales 3.30 1.46 2.84
Earnings yield 5.65% (133.72%) 0.18%
Free cash flow yield 6.68% 70.98% 6.68%

Profitability

Metric DRH SVC Reit Hotel & Motel median
Gross margin 37.56% 35.13% 32.55%
Operating margin 16.63% (6.12%) 9.93%
Net margin 14.11% (29.31%) 0.34%
Free cash flow margin 16.73% 30.27% 19.63%
Return on equity 10.37% (68.16%) 0.59%
Return on assets 5.19% (7.30%) 0.14%
Return on invested capital 4.84% (2.57%) 2.34%

Growth

Metric DRH SVC Reit Hotel & Motel median
Revenue growth (TTM) 2.10% (15.56%) 2.76%
EPS growth (last fiscal year) 144.44% 26.95% (16.85%)
Revenue growth, 5-year CAGR 30.20% 7.48% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH SVC Reit Hotel & Motel median
Debt to equity 0.71 2.39 0.80
Current ratio 1.96 0.02 1.15
Net debt to EBITDA 3.59 6.01 5.14

Dividend

Metric DRH SVC Reit Hotel & Motel median
Dividend yield 2.07% 3.83% 3.05%
Payout ratio 0.37 — 1.19

Size

Metric DRH SVC Reit Hotel & Motel median
Market cap 2.87b 712.30m 1.96b

Compare with another peer

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