WallStSmart

Diamondrock Hospitality Company Common Stock (DRH)vsHost Hotels & Resorts Inc (HST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Host Hotels & Resorts Inc generates 450% more annual revenue ($6.18B vs $1.12B). HST leads profitability with a 16.4% profit margin vs 9.3%. HST appears more attractively valued with a PEG of 2.22. HST earns a higher WallStSmart Score of 64/100 (C+).

DRH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 6.0Quality: 6.0
Piotroski: 5/9Altman Z: 0.69

HST

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+37.6%)

Margin of Safety

+37.6%

Fair Value

$16.07

Current Price

$11.61

$4.46 discount

UndervaluedFair: $16.07Overvalued
HSTOvervalued (-5.0%)

Margin of Safety

-5.0%

Fair Value

$19.00

Current Price

$24.62

$5.62 premium

UndervaluedFair: $19.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH2 strengths · Avg: 9.0/10
EPS GrowthGrowth
75.0%10/10

Earnings expanding 75.0% YoY

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

HST3 strengths · Avg: 8.7/10
EPS GrowthGrowth
105.3%10/10

Earnings expanding 105.3% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

DRH4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

HST3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Altman Z-ScoreHealth
1.382/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

The strongest argument for DRH centers on EPS Growth, Price/Book.

Bull Case : HST

The strongest argument for HST centers on EPS Growth, P/E Ratio, Price/Book. Profitability is solid with margins at 16.4% and operating margin at 19.2%.

Bear Case : DRH

The primary concerns for DRH are Revenue Growth, Return on Equity, PEG Ratio.

Bear Case : HST

The primary concerns for HST are PEG Ratio, Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

HST carries more volatility with a beta of 1.13 — expect wider price swings.

HST is growing revenue faster at 2.8% — sustainability is the question.

HST generates stronger free cash flow (220M), providing more financial flexibility.

Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HST scores higher overall (64/100 vs 57/100), backed by strong 16.4% margins. DRH offers better value entry with a 37.6% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Diamondrock Hospitality Company Common Stock

REAL ESTATE · REIT - HOTEL & MOTEL · USA

DiamondRock Hospitality Company is a self-advising real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in major entry markets and destination resort locations.

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Host Hotels & Resorts Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Host Hotels & Resorts, Inc. is a real estate investment trust that invests in hotels.

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