DiamondRock Hospitality (NYSE:DRH – Get Free Report) and CTO Realty Growth (NYSE:CTO – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Dividends
DiamondRock Hospitality pays an annual dividend of $0.36 per share and has a dividend yield of 3.0%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.1%. DiamondRock Hospitality pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CTO Realty Growth pays out 723.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. DiamondRock Hospitality has increased its dividend for 1 consecutive years.
Insider and Institutional Ownership
67.2% of CTO Realty Growth shares are owned by institutional investors. 0.9% of DiamondRock Hospitality shares are owned by insiders. Comparatively, 4.5% of CTO Realty Growth shares are owned 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.
Risk & Volatility
Analyst Ratings
This is a breakdown of current ratings and target prices for DiamondRock Hospitality and CTO Realty Growth, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DiamondRock Hospitality | 0 | 7 | 3 | 0 | 2.30 |
| CTO Realty Growth | 0 | 1 | 3 | 2 | 3.17 |
DiamondRock Hospitality currently has a consensus target price of $11.65, indicating a potential downside of 2.35%. CTO Realty Growth has a consensus target price of $23.67, indicating a potential upside of 10.12%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, analysts clearly believe CTO Realty Growth is more favorable than DiamondRock Hospitality.
Valuation & Earnings
This table compares DiamondRock Hospitality and CTO Realty Growth”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DiamondRock Hospitality | $1.12 billion | 2.17 | $48.05 million | $0.47 | 25.38 |
| CTO Realty Growth | $149.54 million | 4.85 | $10.09 million | $0.21 | 102.34 |
DiamondRock Hospitality has higher revenue and earnings than CTO Realty Growth. DiamondRock Hospitality is trading at a lower price-to-earnings ratio than CTO Realty Growth, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares DiamondRock Hospitality and CTO Realty Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DiamondRock Hospitality | 5.69% | 4.04% | 2.05% |
| CTO Realty Growth | 9.06% | 2.47% | 1.12% |
Summary
CTO Realty Growth beats DiamondRock Hospitality on 9 of the 17 factors compared between the two stocks.
About DiamondRock Hospitality
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.
About CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
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