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

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

Earnings and Valuation

This table compares Park Hotels & Resorts and Alexander & Baldwin”s gross revenue, earnings per share 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	18.29
Alexander & Baldwin	$236.67 million	5.44	$60.54 million	$0.85	20.83

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.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Park Hotels & Resorts and Alexander & Baldwin, as reported 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 currently has a consensus price target of $12.11, indicating a potential upside of 12.24%. Alexander & Baldwin has a consensus price target of $23.00, indicating a potential upside of 29.91%. Given Alexander & Baldwin’s stronger consensus rating and higher possible upside, analysts plainly believe Alexander & Baldwin is more favorable than Park Hotels & Resorts.

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 insiders. Comparatively, 0.7% of Alexander & Baldwin shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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%

Risk & Volatility

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

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 raised its dividend for 1 consecutive years and Alexander & Baldwin has raised its dividend for 4 consecutive years.

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.