Head to Head Analysis: Alexander’s (NYSE:ALX) vs. DiamondRock Hospitality (NYSE:DRH)

Alexander’s (NYSE:ALXGet Rating) and DiamondRock Hospitality (NYSE:DRHGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

99.5% of DiamondRock Hospitality shares are held by institutional investors. 26.3% of Alexander’s shares are held by company insiders. Comparatively, 1.4% of DiamondRock Hospitality shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Alexander’s and DiamondRock Hospitality, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander’s 1 0 0 0 1.00
DiamondRock Hospitality 1 3 2 0 2.17

Alexander’s currently has a consensus price target of $270.00, indicating a potential upside of 16.58%. DiamondRock Hospitality has a consensus price target of $9.90, indicating a potential upside of 4.10%. Given Alexander’s’ higher possible upside, equities analysts plainly believe Alexander’s is more favorable than DiamondRock Hospitality.

Risk and Volatility

Alexander’s has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, DiamondRock Hospitality has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Alexander’s 65.05% 56.02% 9.02%
DiamondRock Hospitality -1.98% -0.90% -0.47%

Valuation and Earnings

This table compares Alexander’s and DiamondRock Hospitality’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexander’s $206.15 million 5.74 $132.93 million $25.28 9.16
DiamondRock Hospitality $567.13 million 3.54 -$194.58 million ($0.11) -86.45

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

Summary

Alexander’s beats DiamondRock Hospitality on 9 of the 14 factors compared between the two stocks.

Alexander’s Company Profile (Get Rating)

Alexander's, Inc. is a real estate investment trust which has seven properties in the greater New York City metropolitan area.

DiamondRock Hospitality Company Profile (Get Rating)

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 top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.

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