WallStSmart

Diamondrock Hospitality Company (DRH)vsWelltower Inc (WELL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Welltower Inc generates 1023% more annual revenue ($12.76B vs $1.14B). DRH leads profitability with a 13.5% profit margin vs 12.1%. 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

WELL

Buy

57

out of 100

Grade: C

Growth: 10.0Profit: 5.5Value: 2.0Quality: 5.0
Piotroski: 4/9Altman Z: 1.20
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
WELLSignificantly Overvalued (-87.0%)

Margin of Safety

-87.0%

Fair Value

$125.97

Current Price

$235.62

$109.65 premium

UndervaluedFair: $125.97Overvalued

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
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

WELL3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
39.1%10/10

Revenue surging 39.1% year-over-year

Market CapQuality
$169.78B9/10

Large-cap with strong market position

EPS GrowthGrowth
35.6%8/10

Earnings expanding 35.6% 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

WELL4 concerns · Avg: 2.3/10
Return on EquityProfitability
2.9%3/10

ROE of 2.9% — below average capital efficiency

PEG RatioValuation
3.622/10

Expensive relative to growth rate

P/E RatioValuation
105.2x2/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.202/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

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

Bull Case : WELL

The strongest argument for WELL centers on Revenue Growth, Market Cap, EPS Growth. Revenue growth of 39.1% demonstrates continued momentum.

Bear Case : DRH

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

Bear Case : WELL

The primary concerns for WELL are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 105.2x leaves little room for execution misses.

Key Dynamics to Monitor

DRH profiles as a value stock while WELL is a growth play — different risk/reward profiles.

DRH carries more volatility with a beta of 0.99 — expect wider price swings.

WELL is growing revenue faster at 39.1% — sustainability is the question.

WELL generates stronger free cash flow (881M), providing more financial flexibility.

Bottom Line

DRH scores higher overall (63/100 vs 57/100). 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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Welltower Inc

REAL ESTATE · REIT - HEALTHCARE FACILITIES · USA

Welltower Inc. is a real estate investment trust that invests in healthcare infrastructure.

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