Head to Head Analysis: CDL Hospitality Trusts (OTCMKTS:CDHSF) & Host Hotels & Resorts (NASDAQ:HST)

CDL Hospitality Trusts (OTCMKTS:CDHSF) and Host Hotels & Resorts (NASDAQ:HST) are both real estate companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares CDL Hospitality Trusts and Host Hotels & Resorts’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDL Hospitality Trusts	N/A	N/A	N/A	$0.13	6.51
Host Hotels & Resorts	$5.31 billion	2.46	$740.00 million	$1.04	17.88

Host Hotels & Resorts has higher revenue and earnings than CDL Hospitality Trusts. CDL Hospitality Trusts 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.

Profitability

This table compares CDL Hospitality Trusts and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDL Hospitality Trusts	N/A	N/A	N/A
Host Hotels & Resorts	13.93%	10.82%	6.03%

Insider and Institutional Ownership

16.5% of CDL Hospitality Trusts shares are held by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are held by institutional investors. 1.3% of Host Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 13.3%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.3%. CDL Hospitality Trusts pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels & Resorts pays out 76.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings for CDL Hospitality Trusts and Host Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDL Hospitality Trusts	0	0	0	0	N/A
Host Hotels & Resorts	1	3	11	0	2.67

Host Hotels & Resorts has a consensus price target of $21.20, suggesting a potential upside of 14.04%. Given Host Hotels & Resorts’ higher possible upside, analysts clearly believe Host Hotels & Resorts is more favorable than CDL Hospitality Trusts.

Summary

Host Hotels & Resorts beats CDL Hospitality Trusts on 11 of the 12 factors compared between the two stocks.

About CDL Hospitality Trusts

CDL Hospitality Trusts (CDLHT) is one of Asia's leading hospitality trusts with assets under management of about S$3.3 billion as at 31 December 2023. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.

About Host Hotels & Resorts

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 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven 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, Four Seasons, Swissôtel, ibis and Novotel, as well as independent brands.