WallStSmart

Diamondrock Hospitality Company (DRH)vsService Properties Trust (SVC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Service Properties Trust generates 46% more annual revenue ($1.66B vs $1.14B). DRH leads profitability with a 13.5% profit margin vs -25.4%. SVC appears more attractively valued with a PEG of 2.27. 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

SVC

Hold

42

out of 100

Grade: D

Growth: 2.0Profit: 3.5Value: 4.7Quality: 3.0
Piotroski: 5/9Altman Z: -0.36
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$16.11

Current Price

$12.20

$3.91 discount

UndervaluedFair: $16.11Overvalued

Intrinsic value data unavailable for SVC.

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
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

SVC1 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

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

SVC4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Market CapQuality
$985.57M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-52.4%2/10

ROE of -52.4% — below average capital efficiency

Revenue GrowthGrowth
-16.4%2/10

Revenue declined 16.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

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

Bull Case : SVC

The strongest argument for SVC centers on Price/Book.

Bear Case : DRH

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

Bear Case : SVC

The primary concerns for SVC are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 5.68 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

SVC carries more volatility with a beta of 1.64 — expect wider price swings.

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

DRH generates stronger free cash flow (60M), providing more financial flexibility.

Bottom Line

DRH scores higher overall (63/100 vs 42/100). 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

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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Service Properties Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Service Properties Trust is a real estate investment trust, or REIT, that owns a diverse portfolio of hotel and net-leasing services and need-based retail properties in the United States and in Puerto Rico and Canada with 149 different brands across 23 industries. The company is headquartered in Newton, Massachusetts.

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