Paramount Group (PGRE) vs. Braemar Hotel & Resorts (BHR) Head to Head Review

Paramount Group (NYSE: BHR) and Braemar Hotel & Resorts (NYSE:BHR) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Insider and Institutional Ownership

63.4% of Paramount Group shares are owned by institutional investors. Comparatively, 73.8% of Braemar Hotel & Resorts shares are owned by institutional investors. 7.9% of Paramount Group shares are owned by company insiders. Comparatively, 10.2% of Braemar Hotel & 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.

Risk and Volatility

Paramount Group has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Braemar Hotel & Resorts has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Paramount Group and Braemar Hotel & Resorts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Group 1 2 1 0 2.00
Braemar Hotel & Resorts 0 0 2 0 3.00

Paramount Group presently has a consensus target price of $16.38, suggesting a potential upside of 5.92%. Braemar Hotel & Resorts has a consensus target price of $14.50, suggesting a potential upside of 29.70%. Given Braemar Hotel & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Braemar Hotel & Resorts is more favorable than Paramount Group.

Profitability

This table compares Paramount Group and Braemar Hotel & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Group -6.89% -1.01% -0.57%
Braemar Hotel & Resorts 9.30% 10.61% 2.65%

Dividends

Paramount Group pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Braemar Hotel & Resorts pays an annual dividend of $0.64 per share and has a dividend yield of 5.7%. Paramount Group pays out 44.9% of its earnings in the form of a dividend. Braemar Hotel & Resorts pays out 39.5% 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. Braemar Hotel & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Paramount Group and Braemar Hotel & Resorts’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Group $718.97 million 5.17 $86.38 million $0.89 17.37
Braemar Hotel & Resorts $414.06 million 0.88 $23.02 million $1.62 6.90

Paramount Group has higher revenue and earnings than Braemar Hotel & Resorts. Braemar Hotel & Resorts is trading at a lower price-to-earnings ratio than Paramount Group, indicating that it is currently the more affordable of the two stocks.

Summary

Braemar Hotel & Resorts beats Paramount Group on 12 of the 16 factors compared between the two stocks.

About Paramount Group

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City, Washington, D.C. and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

About Braemar Hotel & Resorts

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

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