Park Hotels & Resorts Inc. (PK) vs Sunstone Hotel Investors, Inc. (SHO)

Park Hotels & Resorts Inc. and Sunstone Hotel Investors, Inc. are both Reit Hotel & Motel companies. Park Hotels & Resorts Inc. is the larger, with a market value of $3.1B against $2.1B — 1.5× the size. Park Hotels & Resorts Inc. has negative trailing earnings, so its P/E is not meaningful; Sunstone Hotel Investors, Inc. trades at 50.9×. Sunstone Hotel Investors, Inc. grew revenue faster over the last twelve months: 7.28% against −1.36%. Sunstone Hotel Investors, Inc. has the higher net margin (4.21% vs −6.41%) and the higher return on invested capital (2.16% vs 0.49%). Both pay a dividend; Park Hotels & Resorts Inc. yields more (6.85% vs 2.43%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 16 and Park Hotels & Resorts Inc. on 5.

Valuation

Metric PK SHO Reit Hotel & Motel median
P/E n/m 50.86 25.03
P/S 1.21 2.07 1.53
P/B 1.02 1.27 1.05
Price to free cash flow 28.31 19.91 7.25
EV/EBITDA 19.94 11.76 11.74
EV/Sales 2.64 2.83 2.64
Earnings yield (5.38%) 1.97% (0.39%)
Free cash flow yield 3.53% 5.02% 7.53%

Profitability

Metric PK SHO Reit Hotel & Motel median
Gross margin 65.09% 63.41% 37.37%
Operating margin 2.05% 9.12% 9.53%
Net margin (6.41%) 4.21% (0.66%)
Free cash flow margin 4.29% 9.65% 17.01%
Return on equity (5.08%) 2.53% 0.53%
Return on assets (1.97%) 1.40% (0.26%)
Return on invested capital 0.49% 2.16% 2.16%

Growth

Metric PK SHO Reit Hotel & Motel median
Revenue growth (TTM) (1.36%) 7.28% 1.17%
EPS growth (last fiscal year) (241.58%) (71.43%) —
Revenue growth, 5-year CAGR 24.43% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PK SHO Reit Hotel & Motel median
Debt to equity 1.29 0.51 0.83
Current ratio 1.53 3.84 1.34
Net debt to EBITDA 11.46 3.29 5.14

Dividend

Metric PK SHO Reit Hotel & Motel median
Dividend yield 6.85% 2.43% 3.10%
Payout ratio 0.12 0.48 0.48

Size

Metric PK SHO Reit Hotel & Motel median
Market cap 3.06b 2.07b 1.70b

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