Contrasting Park Hotels & Resorts (NYSE:PK) & Alexander & Baldwin (NYSE:ALEX)

Park Hotels & Resorts (NYSE:PK) and Alexander & Baldwin (NYSE:ALEX) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Park Hotels & Resorts and Alexander & Baldwin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Park Hotels & Resorts	2	6	3	0	2.09
Alexander & Baldwin	0	1	2	0	2.67

Park Hotels & Resorts presently has a consensus target price of $12.11, suggesting a potential upside of 12.45%. Alexander & Baldwin has a consensus target price of $23.00, suggesting a potential upside of 30.46%. Given Alexander & Baldwin’s stronger consensus rating and higher possible upside, analysts plainly believe Alexander & Baldwin is more favorable than Park Hotels & Resorts.

Profitability

This table compares Park Hotels & Resorts and Alexander & Baldwin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Park Hotels & Resorts	4.90%	2.65%	1.05%
Alexander & Baldwin	27.05%	6.49%	3.94%

Insider and Institutional Ownership

92.7% of Park Hotels & Resorts shares are owned by institutional investors. Comparatively, 91.3% of Alexander & Baldwin shares are owned by institutional investors. 1.9% of Park Hotels & Resorts shares are owned by company insiders. Comparatively, 0.7% of Alexander & Baldwin shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 9.3%. Alexander & Baldwin pays an annual dividend of $0.90 per share and has a dividend yield of 5.1%. Park Hotels & Resorts pays out 169.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin pays out 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts has increased its dividend for 1 consecutive years and Alexander & Baldwin has increased its dividend for 4 consecutive years.

Risk and Volatility

Park Hotels & Resorts has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Alexander & Baldwin has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares Park Hotels & Resorts and Alexander & Baldwin”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Park Hotels & Resorts	$2.60 billion	0.83	$212.00 million	$0.59	18.25
Alexander & Baldwin	$236.67 million	5.42	$60.54 million	$0.85	20.74

Park Hotels & Resorts has higher revenue and earnings than Alexander & Baldwin. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Alexander & Baldwin, indicating that it is currently the more affordable of the two stocks.

Summary

Alexander & Baldwin beats Park Hotels & Resorts on 10 of the 17 factors compared between the two stocks.

About Park Hotels & Resorts

Park Hotels & Resorts, Inc. operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio. The company was founded by Conrad Hilton in 1919 and is headquartered in Tysons, VA.

About Alexander & Baldwin

Alexander & Baldwin, Inc. engages in the real estate business. It operates through the Commercial Real Estate and Land Operations segments. The Commercial Real Estate segment includes investments and acquisitions, construction and development, and in-house leasing and property management. The Land Operations segment consists of legacy landholdings, assets, and liabilities subject to the company’s simplification and monetization effort. The company was founded by Samuel Thomas Alexander and Henry Perrine Baldwin in 1870 and is headquartered in Honolulu, HI.