Head to Head Analysis: Postal Realty Trust (NYSE:PSTL) & DiamondRock Hospitality (NYSE:DRH)

Postal Realty Trust (NYSE:PSTL) and DiamondRock Hospitality (NYSE:DRH) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares Postal Realty Trust and DiamondRock Hospitality’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Postal Realty Trust $24.68 million 10.03 -$350,000.00 $0.11 164.56
DiamondRock Hospitality $299.49 million 7.00 -$394.38 million ($1.98) -5.03

Postal Realty Trust has higher earnings, but lower revenue than DiamondRock Hospitality. DiamondRock Hospitality is trading at a lower price-to-earnings ratio than Postal Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Postal Realty Trust and DiamondRock Hospitality’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Postal Realty Trust 4.92% 1.09% 0.60%
DiamondRock Hospitality -91.48% -25.28% -13.44%

Risk & Volatility

Postal Realty Trust has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, DiamondRock Hospitality has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Insider and Institutional Ownership

69.5% of Postal Realty Trust shares are owned by institutional investors. 16.9% of Postal Realty Trust shares are owned by company insiders. Comparatively, 1.4% of DiamondRock Hospitality shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Postal Realty Trust and DiamondRock Hospitality, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Postal Realty Trust 0 0 1 0 3.00
DiamondRock Hospitality 0 4 3 0 2.43

Postal Realty Trust presently has a consensus target price of $22.00, indicating a potential upside of 21.55%. DiamondRock Hospitality has a consensus target price of $9.50, indicating a potential downside of 4.52%. Given Postal Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Postal Realty Trust is more favorable than DiamondRock Hospitality.

Summary

Postal Realty Trust beats DiamondRock Hospitality on 11 of the 14 factors compared between the two stocks.

About Postal Realty Trust

Postal Realty Trust, Inc. is an internally managed real estate investment trust that owns and manages over 1,000 properties leased to the USPS. The Company believes it is one of the largest owners and managers of properties leased to the USPS.

About DiamondRock Hospitality

DiamondRock Hospitality Co. is a real estate investment trust which focuses on lodging properties. It engages in the acquisition, ownership, asset management, and renovation of hotels and resorts. Its brands include Autograph Collection Hotels, Courtyard Marriott, Hilton Garden Inn, Hilton Hotels & Resorts, JW Marriott, and Kimpton Hotels & Restaurants. The company was founded by Mark W. Brugger, William W. McCarten, and John L. Williams in 2004 and is headquartered in Bethesda, MD.

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