Analyzing Host Hotels & Resorts (HST) and The Competition

Host Hotels & Resorts (NASDAQ:HST) is one of 24 publicly-traded companies in the “Hotel & Resort REITs” industry, but how does it contrast to its rivals? We will compare Host Hotels & Resorts to similar businesses based on the strength of its analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Insider & Institutional Ownership

98.5% of Host Hotels & Resorts shares are owned by institutional investors. Comparatively, 70.5% of shares of all “Hotel & Resort REITs” companies are owned by institutional investors. 1.5% of Host Hotels & Resorts shares are owned by company insiders. Comparatively, 8.9% of shares of all “Hotel & Resort REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Host Hotels & Resorts and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	15.01%	14.19%	7.12%
Host Hotels & Resorts Competitors	0.15%	3.67%	1.13%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Host Hotels & Resorts and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	0	6	8	1	2.67
Host Hotels & Resorts Competitors	539	1745	1286	33	2.23

Host Hotels & Resorts currently has a consensus target price of $25.35, suggesting a potential upside of 0.28%. As a group, “Hotel & Resort REITs” companies have a potential downside of 2.19%. Given Host Hotels & Resorts’ stronger consensus rating and higher probable upside, research analysts clearly believe Host Hotels & Resorts is more favorable than its rivals.

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 3.2%. Host Hotels & Resorts pays out 58.4% of its earnings in the form of a dividend. As a group, “Hotel & Resort REITs” companies pay a dividend yield of 3.8% and pay out -745.1% of their earnings in the form of a dividend. Host Hotels & Resorts has increased its dividend for 2 consecutive years. Host Hotels & Resorts lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility and Risk

Host Hotels & Resorts has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts’ rivals have a beta of 0.97, indicating that their average share price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Host Hotels & Resorts and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Host Hotels & Resorts	$6.11 billion	$765.00 million	18.45
Host Hotels & Resorts Competitors	$1.39 billion	$29.80 million	49.63

Host Hotels & Resorts has higher revenue and earnings than its rivals. Host Hotels & Resorts is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Host Hotels & Resorts beats its rivals on 11 of the 15 factors compared.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.