WallStSmart

Diamondrock Hospitality Company Common Stock (DRH)vsRLJ Lodging Trust (RLJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RLJ Lodging Trust generates 20% more annual revenue ($1.35B vs $1.12B). DRH leads profitability with a 9.1% profit margin vs 2.1%. RLJ appears more attractively valued with a PEG of 2.06. DRH earns a higher WallStSmart Score of 46/100 (D+).

DRH

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 5.5Value: 4.7Quality: 5.0

RLJ

Hold

45

out of 100

Grade: D+

Growth: 2.7Profit: 6.0Value: 4.7Quality: 5.5
Piotroski: 3/9Altman Z: 0.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHSignificantly Overvalued (-235.1%)

Margin of Safety

-235.1%

Fair Value

$2.99

Current Price

$9.56

$6.57 premium

UndervaluedFair: $2.99Overvalued
RLJSignificantly Overvalued (-11914.3%)

Margin of Safety

-11914.3%

Fair Value

$0.07

Current Price

$7.67

$7.60 premium

UndervaluedFair: $0.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

RLJ2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
127.0%10/10

Every $100 of equity generates 127 in profit

Areas to Watch

DRH4 concerns · Avg: 2.5/10
Market CapQuality
$1.97B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

RLJ4 concerns · Avg: 3.3/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Market CapQuality
$1.17B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Debt/EquityHealth
1.073/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

The strongest argument for DRH centers on Price/Book.

Bull Case : RLJ

The strongest argument for RLJ centers on Price/Book, Return on Equity.

Bear Case : DRH

The primary concerns for DRH are Market Cap, Return on Equity, PEG Ratio.

Bear Case : RLJ

The primary concerns for RLJ are PEG Ratio, Market Cap, Profit Margin. A P/E of 767.0x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

RLJ carries more volatility with a beta of 1.09 — expect wider price swings.

DRH is growing revenue faster at -1.6% — sustainability is the question.

RLJ generates stronger free cash flow (48M), providing more financial flexibility.

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

Bottom Line

DRH scores higher overall (46/100 vs 45/100). Both earn "Hold" 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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RLJ Lodging Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

RLJ Lodging Trust is a publicly traded and publicly traded real estate investment trust primarily owning premium brand, high margin, focused service and compact full service hotels.

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