Financial Review: Rexford Industrial Realty (NYSE:REXR) versus Host Hotels & Resorts (NASDAQ:HST)

Host Hotels & Resorts (NASDAQ:HST) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. Rexford Industrial Realty pays an annual dividend of $1.72 per share and has a dividend yield of 5.3%. Host Hotels & Resorts pays out 72.7% of its earnings in the form of a dividend. Rexford Industrial Realty pays out 202.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels & Resorts has increased its dividend for 2 consecutive years and Rexford Industrial Realty has increased its dividend for 4 consecutive years. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Host Hotels & Resorts and Rexford Industrial Realty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	0	6	9	1	2.69
Rexford Industrial Realty	2	8	3	0	2.08

Host Hotels & Resorts presently has a consensus price target of $20.43, indicating a potential upside of 6.62%. Rexford Industrial Realty has a consensus price target of $41.92, indicating a potential upside of 28.24%. Given Rexford Industrial Realty’s higher possible upside, analysts clearly believe Rexford Industrial Realty is more favorable than Host Hotels & Resorts.

Profitability

This table compares Host Hotels & Resorts and Rexford Industrial Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	12.51%	11.54%	5.89%
Rexford Industrial Realty	21.03%	2.37%	1.63%

Earnings & Valuation

This table compares Host Hotels & Resorts and Rexford Industrial Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Host Hotels & Resorts	$6.11 billion	2.16	$765.00 million	$1.10	17.42
Rexford Industrial Realty	$1.00 billion	7.56	$212.03 million	$0.85	38.46

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

Risk and Volatility

Host Hotels & Resorts has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.

Institutional & Insider Ownership

98.5% of Host Hotels & Resorts shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 1.4% of Host Hotels & Resorts shares are held by insiders. Comparatively, 1.2% of Rexford Industrial Realty shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Host Hotels & Resorts beats Rexford Industrial Realty on 10 of the 18 factors compared between the two stocks.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.

About Rexford Industrial Realty

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.