Financial Review: Park Hotels & Resorts (NYSE:PK) & Peakstone Realty Trust (NYSE:PKST)

Peakstone Realty Trust (NYSE:PKST) and Park Hotels & Resorts (NYSE:PK) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Insider & Institutional Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. Comparatively, 92.7% of Park Hotels & Resorts shares are owned by institutional investors. 0.8% of Peakstone Realty Trust 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Peakstone Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 8.8%. Peakstone Realty Trust pays out -4.8% of its earnings in the form of a dividend. Park Hotels & Resorts pays out -69.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Peakstone Realty Trust has increased its dividend for 1 consecutive years and 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 lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and target prices for Peakstone Realty Trust and Park Hotels & Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peakstone Realty Trust	1	3	0	0	1.75
Park Hotels & Resorts	3	8	2	0	1.92

Peakstone Realty Trust presently has a consensus price target of $21.00, suggesting a potential upside of 0.53%. Park Hotels & Resorts has a consensus price target of $11.27, suggesting a potential downside of 0.24%. Given Peakstone Realty Trust’s higher probable upside, equities research analysts plainly believe Peakstone Realty Trust is more favorable than Park Hotels & Resorts.

Risk and Volatility

Peakstone Realty Trust has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Earnings & Valuation

This table compares Peakstone Realty Trust and Park Hotels & Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peakstone Realty Trust	$105.98 million	7.33	-$307.71 million	($8.39)	-2.49
Park Hotels & Resorts	$2.54 billion	0.89	-$283.00 million	($1.43)	-7.90

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

Profitability

This table compares Peakstone Realty Trust and Park Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peakstone Realty Trust	-189.03%	-39.44%	-16.55%
Park Hotels & Resorts	-11.14%	-8.56%	-3.30%

Summary

Park Hotels & Resorts beats Peakstone Realty Trust on 12 of the 16 factors compared between the two stocks.

About Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.

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.