Host Hotels & Resorts (NASDAQ:HST – Get Rating) and Lument Finance Trust (NYSE:LFT – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.
This is a summary of current ratings and target prices for Host Hotels & Resorts and Lument Finance Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Host Hotels & Resorts||0||4||7||0||2.64|
|Lument Finance Trust||0||1||4||0||2.80|
Valuation and Earnings
This table compares Host Hotels & Resorts and Lument Finance Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Host Hotels & Resorts||$2.89 billion||4.92||-$11.00 million||$0.35||56.89|
|Lument Finance Trust||$36.19 million||3.80||$10.53 million||$0.24||10.96|
Lument Finance Trust has lower revenue, but higher earnings than Host Hotels & Resorts. Lument Finance Trust is trading at a lower price-to-earnings ratio than Host Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.
This table compares Host Hotels & Resorts and Lument Finance Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Host Hotels & Resorts||7.21%||4.06%||2.07%|
|Lument Finance Trust||25.54%||8.24%||1.02%|
Volatility and Risk
Host Hotels & Resorts has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Lument Finance Trust has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Host Hotels & Resorts pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Lument Finance Trust pays an annual dividend of $0.24 per share and has a dividend yield of 9.1%. Host Hotels & Resorts pays out 34.3% of its earnings in the form of a dividend. Lument Finance Trust pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Insider and Institutional Ownership
59.7% of Lument Finance Trust shares are held by institutional investors. 1.2% of Host Hotels & Resorts shares are held by insiders. Comparatively, 2.0% of Lument Finance Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Lument Finance Trust beats Host Hotels & Resorts on 9 of the 16 factors compared between the two stocks.
Host Hotels & Resorts Company Profile (Get Rating)
Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 74 properties in the United States and five properties internationally totaling approximately 46,100 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott®, Ritz-Carlton®, Westin®, Sheraton®, W®, St. Regis®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. For additional information, please visit the Company's website at www.hosthotels.com.
Lument Finance Trust Company Profile (Get Rating)
Lument Finance Trust, Inc., a real estate investment trust, focuses on investing in, financing, and managing a portfolio of commercial real estate (CRE) debt investments in the United States. The company primarily invests in transitional floating rate commercial mortgage loans on middle market multi-family assets; and other CRE -related investments, including mezzanine loans, preferred equity, commercial mortgage-backed securities, fixed rate loans, construction loans, and other CRE debt instruments. Lument Finance Trust, Inc. is qualified as a real estate investment trust (REIT) under the Internal Revenue Code of 1986. As a REIT, it would not be subject to federal income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as Hunt Companies Finance Trust, Inc. and changed its name to Lument Finance Trust, Inc. in December 2020. Lument Finance Trust, Inc. was incorporated in 2012 and is headquartered in New York, New York.
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