WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pebblebrook Hotel Trust generates 34% more annual revenue ($1.50B vs $1.12B). DRH leads profitability with a 9.3% profit margin vs -3.5%. DRH appears more attractively valued with a PEG of 2.52. DRH earns a higher WallStSmart Score of 57/100 (C).

DRH

Buy

57

out of 100

Grade: C

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

PEB

Hold

42

out of 100

Grade: D

Growth: 4.0Profit: 3.0Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.44
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+37.4%)

Margin of Safety

+37.4%

Fair Value

$16.00

Current Price

$13.24

$2.76 discount

UndervaluedFair: $16.00Overvalued
PEBUndervalued (+80.9%)

Margin of Safety

+80.9%

Fair Value

$67.37

Current Price

$19.10

$48.27 discount

UndervaluedFair: $67.37Overvalued

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
1.9x8/10

Reasonable price relative to book value

PEB1 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

DRH4 concerns · Avg: 3.3/10
P/E RatioValuation
27.1x4/10

Moderate valuation

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

PEB4 concerns · Avg: 2.3/10
Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

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

EPS GrowthGrowth
-61.6%2/10

Earnings declined 61.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

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

Bull Case : PEB

The strongest argument for PEB centers on Price/Book.

Bear Case : DRH

The primary concerns for DRH are P/E Ratio, Revenue Growth, Return on Equity.

Bear Case : PEB

The primary concerns for PEB are Operating Margin, 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.

PEB is growing revenue faster at 7.9% — sustainability is the question.

PEB generates stronger free cash flow (72M), providing more financial flexibility.

Bottom Line

DRH scores higher overall (57/100 vs 42/100). PEB offers better value entry with a 80.9% margin of safety. Both earn "Buy" and "Hold" 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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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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