Analyzing Host Hotels & Resorts (HST) and Its Rivals

Host Hotels & Resorts (NYSE: HST) is one of 28 public companies in the “Hospitality REITs” industry, but how does it weigh in compared to its peers? We will compare Host Hotels & Resorts to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Host Hotels & Resorts and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Host Hotels & Resorts 1 8 5 0 2.29
Host Hotels & Resorts Competitors 233 927 897 19 2.34

Host Hotels & Resorts presently has a consensus price target of $18.11, indicating a potential downside of 1.07%. As a group, “Hospitality REITs” companies have a potential upside of 6.25%. Given Host Hotels & Resorts’ peers stronger consensus rating and higher possible upside, analysts clearly believe Host Hotels & Resorts has less favorable growth aspects than its peers.

Insider & Institutional Ownership

77.4% of shares of all “Hospitality REITs” companies are held by institutional investors. 1.7% of Host Hotels & Resorts shares are held by company insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are held 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.

Volatility & Risk

Host Hotels & Resorts has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts’ peers have a beta of 1.00, indicating that their average share price is 0% more volatile than the S&P 500.

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.4%. Host Hotels & Resorts pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.5% and pay out 135.4% of their earnings in the form of a dividend. Host Hotels & Resorts has increased its dividend for 6 consecutive years.

Profitability

This table compares Host Hotels & Resorts and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Host Hotels & Resorts 11.09% 8.47% 5.16%
Host Hotels & Resorts Competitors 12.45% 5.35% 3.63%

Earnings & Valuation

This table compares Host Hotels & Resorts and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Host Hotels & Resorts $5.45 billion $1.45 billion 22.89
Host Hotels & Resorts Competitors $1.09 billion $355.70 million -15.69

Host Hotels & Resorts has higher revenue and earnings than its peers. Host Hotels & Resorts is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Host Hotels & Resorts peers beat Host Hotels & Resorts on 8 of the 15 factors compared.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). The Company operates through hotel ownership segment. The Company operates through hotel ownership segment. The Company owned properties and conducted operations through Host Hotels & Resorts, L.P. (Host L.P.), of which Host Inc. was the general partner and of which it held approximately 99% of the partnership interests (OP units), as of December 31, 2016. As of February 20, 2017, its lodging portfolio consisted of 96 primarily luxury and upper-upscale hotels containing approximately 53,500 rooms, with the majority located in the United States, and with seven of the properties located outside of the United States in Australia, Brazil, Canada and Mexico. In addition, it owns non-controlling interests in two international joint ventures: approximately a 33% interest in a joint venture in Europe, and a 9% indirect interest, through joint ventures in India.

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