Service Properties Trust (NASDAQ:SVC) versus Kilroy Realty (NYSE:KRC) Head-To-Head Analysis

Kilroy Realty (NYSE:KRC) and Service Properties Trust (NASDAQ:SVC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Institutional & Insider Ownership

94.2% of Kilroy Realty shares are held by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are held by institutional investors. 2.5% of Kilroy Realty shares are held by insiders. Comparatively, 1.4% of Service Properties Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Kilroy Realty and Service Properties Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kilroy Realty	$1.14 billion	4.02	$210.97 million	$2.71	14.23
Service Properties Trust	$1.90 billion	0.17	-$275.53 million	($1.67)	-1.14

Kilroy Realty has higher earnings, but lower revenue than Service Properties Trust. Service Properties Trust is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Kilroy Realty and Service Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kilroy Realty	1	11	1	0	2.00
Service Properties Trust	1	3	0	0	1.75

Kilroy Realty presently has a consensus target price of $42.08, suggesting a potential upside of 9.14%. Service Properties Trust has a consensus target price of $2.75, suggesting a potential upside of 43.98%. Given Service Properties Trust’s higher probable upside, analysts clearly believe Service Properties Trust is more favorable than Kilroy Realty.

Dividends

Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.6%. Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 2.1%. Kilroy Realty pays out 79.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Service Properties Trust pays out -2.4% of its earnings in the form of a dividend.

Profitability

This table compares Kilroy Realty and Service Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kilroy Realty	28.68%	5.75%	2.96%
Service Properties Trust	-14.83%	-37.94%	-3.97%

Risk & Volatility

Kilroy Realty has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.

Summary

Kilroy Realty beats Service Properties Trust on 12 of the 16 factors compared between the two stocks.

About Kilroy Realty

Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.