DiamondRock Hospitality (NYSE: HRD) and Franklin Street Properties (NYSE: FSP) Financial Contrast


DiamondRock Hospitality (NYSE:DRH – Get Rating) and Franklin Street Properties (NYSE:FSP – Get Rating) are both small cap finance companies, but which business is superior? We’ll compare the two companies based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Analyst Notes

This is a breakdown of current price recommendations and targets for DiamondRock Hospitality and Franklin Street Properties, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
DiamondRock Hospitality 1 2 2 0 2.20
Franklin Street Properties 0 0 0 0 N / A

DiamondRock Hospitality currently has a consensus target price of $11.10, suggesting a potential upside of 32.14%. Given DiamondRock Hospitality’s likely higher upside, analysts clearly believe that DiamondRock Hospitality is more favorable than Franklin Street Properties.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of DiamondRock Hospitality and Franklin Street Properties.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
DiamondRock Hospitality $567.13 million 3.12 -$194.58 million ($0.11) -76.36
Franklin Street Properties $209.36 million 2.13 $92.72 million $0.90 4.80

Franklin Street Properties has lower revenues, but higher profits than DiamondRock Hospitality. DiamondRock Hospitality trades at a lower price-to-earnings ratio than Franklin Street Properties, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.5% of DiamondRock Hospitality shares are held by institutional investors. By comparison, 83.2% of Franklin Street Properties shares are held by institutional investors. 1.4% of DiamondRock Hospitality shares are held by insiders. By comparison, 4.7% of Franklin Street Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds, and large money managers believe a company is poised for long-term growth.

Volatility and risk

DiamondRock Hospitality has a beta of 1.57, indicating its stock price is 57% more volatile than the S&P 500. In contrast, Franklin Street Properties has a beta of 0.88, indicating its stock price is 12 % less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of DiamondRock Hospitality and Franklin Street Properties.

Net margins Return on equity return on assets
DiamondRock Hospitality -1.98% -0.90% -0.46%
Franklin Street Properties 49.34% 12.36% 6.54%

Summary

Franklin Street Properties beats DiamondRock Hospitality on 7 out of 13 factors compared between the two stocks.

About DiamondRock Hospitality (Get an assessment)

DiamondRock Hospitality Company is a self-administered real estate investment trust (REIT) that owns a leading portfolio of geographically diverse hotels concentrated in major gateway markets and resort destinations. The company owns 31 premium hotels with over 10,000 rooms. The company has strategically positioned its hotels to operate under both leading global brand families as well as unique boutique hotels in the lifestyle segment.

About Franklin Street Properties (Get an assessment)

Franklin Street Properties LogoFranklin Street Properties Corp., based in Wakefield, Massachusetts, focuses on infill and central business district (CBD) office properties in the United States Sunbelt and Mountain West, as well as select opportunistic markets. FSP seeks value-oriented investments with an eye to long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.



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