Head to Head Comparison: DiamondRock Hospitality (NYSE:DRH) & Clipper Realty (NYSE:CLPR)

DiamondRock Hospitality (NYSE:DRHGet Free Report) and Clipper Realty (NYSE:CLPRGet Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DiamondRock Hospitality $1.07 billion 1.87 $86.34 million $0.36 26.70
Clipper Realty $138.21 million 0.56 -$5.90 million ($0.45) -10.73

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

Institutional & Insider Ownership

37.6% of Clipper Realty shares are held by institutional investors. 1.4% of DiamondRock Hospitality shares are held by insiders. Comparatively, 52.3% of Clipper Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for DiamondRock Hospitality and Clipper Realty, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DiamondRock Hospitality 0 3 2 0 2.40
Clipper Realty 0 0 3 0 3.00

DiamondRock Hospitality presently has a consensus price target of $10.30, suggesting a potential upside of 7.18%. Clipper Realty has a consensus price target of $9.50, suggesting a potential upside of 96.69%. Given Clipper Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Clipper Realty is more favorable than DiamondRock Hospitality.

Risk and Volatility

DiamondRock Hospitality has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
DiamondRock Hospitality 8.03% 5.29% 2.68%
Clipper Realty -4.27% -35.33% -0.48%

Dividends

DiamondRock Hospitality pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 7.9%. DiamondRock Hospitality pays out 33.3% of its earnings in the form of a dividend. Clipper Realty pays out -84.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

DiamondRock Hospitality beats Clipper Realty on 9 of the 16 factors compared between the two stocks.

About DiamondRock Hospitality

(Get Free Report)

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.

About Clipper Realty

(Get Free Report)

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

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