Reviewing Healthpeak Properties (NYSE:DOC) & DiamondRock Hospitality (NYSE:DRH)

Healthpeak Properties (NYSE:DOC) and DiamondRock Hospitality (NYSE:DRH) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Volatility and Risk

Healthpeak Properties has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, DiamondRock Hospitality has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares Healthpeak Properties and DiamondRock Hospitality’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Healthpeak Properties	2.52%	0.84%	0.36%
DiamondRock Hospitality	5.69%	4.04%	2.05%

Dividends

Healthpeak Properties pays an annual dividend of $1.22 per share and has a dividend yield of 7.4%. DiamondRock Hospitality pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Healthpeak Properties pays out 1,220.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DiamondRock Hospitality pays out 81.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DiamondRock Hospitality has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Healthpeak Properties and DiamondRock Hospitality, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthpeak Properties	0	9	6	0	2.40
DiamondRock Hospitality	0	6	4	0	2.40

Healthpeak Properties presently has a consensus price target of $19.04, suggesting a potential upside of 15.97%. DiamondRock Hospitality has a consensus price target of $10.36, suggesting a potential upside of 2.18%. Given Healthpeak Properties’ higher possible upside, equities analysts clearly believe Healthpeak Properties is more favorable than DiamondRock Hospitality.

Earnings and Valuation

This table compares Healthpeak Properties and DiamondRock Hospitality”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthpeak Properties	$2.82 billion	4.04	$71.35 million	$0.10	164.15
DiamondRock Hospitality	$1.12 billion	1.85	$48.05 million	$0.44	23.05

Healthpeak Properties has higher revenue and earnings than DiamondRock Hospitality. DiamondRock Hospitality is trading at a lower price-to-earnings ratio than Healthpeak Properties, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

93.6% of Healthpeak Properties shares are owned by institutional investors. 0.2% of Healthpeak Properties shares are owned by insiders. Comparatively, 0.9% of DiamondRock Hospitality shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Healthpeak Properties beats DiamondRock Hospitality on 9 of the 16 factors compared between the two stocks.

About Healthpeak Properties

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company. Healthpeak owns, operates, and develops high-quality real estate for healthcare discovery and delivery.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.