Financial Survey: Net Lease Office Properties (NYSE:NLOP) and Park Hotels & Resorts (NYSE:PK)

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

Profitability

This table compares Net Lease Office Properties and Park Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Net Lease Office Properties	-122.16%	-31.89%	-23.92%
Park Hotels & Resorts	-11.14%	-8.56%	-3.30%

Insider and Institutional Ownership

58.3% of Net Lease Office Properties shares are held by institutional investors. Comparatively, 92.7% of Park Hotels & Resorts shares are held by institutional investors. 0.7% of Net Lease Office Properties shares are held by insiders. Comparatively, 2.5% of Park Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Net Lease Office Properties and Park Hotels & Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Net Lease Office Properties	$118.92 million	1.60	-$145.26 million	($9.80)	-1.31
Park Hotels & Resorts	$2.54 billion	0.88	-$283.00 million	($1.43)	-7.74

Net Lease Office Properties has higher earnings, but lower revenue than Park Hotels & Resorts. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Net Lease Office Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Net Lease Office Properties and Park Hotels & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Net Lease Office Properties	1	0	0	0	1.00
Park Hotels & Resorts	3	8	2	0	1.92

Park Hotels & Resorts has a consensus target price of $11.45, suggesting a potential upside of 3.43%. Given Park Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Park Hotels & Resorts is more favorable than Net Lease Office Properties.

Volatility and Risk

Net Lease Office Properties has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Summary

Park Hotels & Resorts beats Net Lease Office Properties on 11 of the 14 factors compared between the two stocks.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.

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.