Park Hotels & Resorts (NYSE:PK) versus Douglas Emmett (NYSE:DEI) Critical Review

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Douglas Emmett	$1.00 billion	1.69	$23.52 million	$0.12	84.38
Park Hotels & Resorts	$2.60 billion	0.86	$212.00 million	($0.07)	-160.07

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

Insider and Institutional Ownership

97.4% of Douglas Emmett shares are owned by institutional investors. Comparatively, 92.7% of Park Hotels & Resorts shares are owned by institutional investors. 15.1% of Douglas Emmett shares are owned by company insiders. Comparatively, 1.9% of Park Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Douglas Emmett and Park Hotels & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Douglas Emmett	1	6	2	0	2.11
Park Hotels & Resorts	3	8	2	0	1.92

Douglas Emmett currently has a consensus target price of $14.63, suggesting a potential upside of 44.44%. Park Hotels & Resorts has a consensus target price of $11.27, suggesting a potential upside of 0.60%. Given Douglas Emmett’s stronger consensus rating and higher possible upside, equities analysts clearly believe Douglas Emmett is more favorable than Park Hotels & Resorts.

Dividends

Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 7.5%. Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 8.9%. Douglas Emmett pays out 633.3% 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 pays out -1,428.6% of its earnings in the form of a dividend. Park Hotels & Resorts has increased its dividend for 1 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Douglas Emmett and Park Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Douglas Emmett	1.62%	0.46%	0.17%
Park Hotels & Resorts	-0.47%	-1.25%	-0.48%

Risk & Volatility

Douglas Emmett has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500.

Summary

Douglas Emmett beats Park Hotels & Resorts on 10 of the 16 factors compared between the two stocks.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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.