WallStSmart

Diamondrock Hospitality Company (DRH)vsPebblebrook Hotel Trust (PEB)

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Smart Verdict

WallStSmart Research — data-driven comparison

Pebblebrook Hotel Trust generates 32% more annual revenue ($1.50B vs $1.14B). DRH leads profitability with a 13.5% profit margin vs -3.1%. DRH appears more attractively valued with a PEG of 2.52. DRH earns a higher WallStSmart Score of 63/100 (C+).

DRH

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 0.69

PEB

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$16.11

Current Price

$12.39

$3.72 discount

UndervaluedFair: $16.11Overvalued
PEBUndervalued (+80.8%)

Margin of Safety

+80.8%

Fair Value

$66.97

Current Price

$18.19

$48.78 discount

UndervaluedFair: $66.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH4 strengths · Avg: 8.5/10
EPS GrowthGrowth
144.4%10/10

Earnings expanding 144.4% YoY

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.7x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

PEB2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
189.2%10/10

Earnings expanding 189.2% YoY

Areas to Watch

DRH4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% 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

PEB4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.023/10

Elevated debt levels

PEG RatioValuation
3.212/10

Expensive relative to growth rate

Return on EquityProfitability
-2.1%2/10

ROE of -2.1% — below average capital efficiency

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

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

Bull Case : PEB

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

Bear Case : DRH

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

Bear Case : PEB

The primary concerns for PEB are Debt/Equity, PEG Ratio, Return on Equity.

Key Dynamics to Monitor

DRH profiles as a value stock while PEB is a turnaround play — different risk/reward profiles.

PEB carries more volatility with a beta of 1.40 — expect wider price swings.

DRH is growing revenue faster at 4.1% — sustainability is the question.

PEB generates stronger free cash flow (62M), providing more financial flexibility.

Bottom Line

DRH scores higher overall (63/100 vs 51/100). PEB offers better value entry with a 80.8% 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

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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Pebblebrook Hotel Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (REIT) and the largest owner of urban and resort lifestyle hotels in the United States.

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