Analyzing Host Hotels & Resorts (NASDAQ:HST) & Keppel REIT (OTCMKTS:KREVF)

Host Hotels & Resorts (NASDAQ:HST) and Keppel REIT (OTCMKTS:KREVF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

98.5% of Host Hotels & Resorts shares are owned by institutional investors. 1.5% of Host Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Host Hotels & Resorts and Keppel REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	12.51%	11.54%	5.89%
Keppel REIT	N/A	N/A	N/A

Volatility and Risk

Host Hotels & Resorts has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Keppel REIT has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Host Hotels & Resorts and Keppel REIT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Host Hotels & Resorts	$6.11 billion	2.36	$765.00 million	$1.10	19.09
Keppel REIT	$210.12 million	12.56	$347.92 million	N/A	N/A

Host Hotels & Resorts has higher revenue and earnings than Keppel REIT.

Analyst Ratings

This is a breakdown of recent ratings for Host Hotels & Resorts and Keppel REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	0	6	8	1	2.67
Keppel REIT	0	1	0	0	2.00

Host Hotels & Resorts currently has a consensus price target of $21.38, suggesting a potential upside of 1.86%. Given Host Hotels & Resorts’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Host Hotels & Resorts is more favorable than Keppel REIT.

Summary

Host Hotels & Resorts beats Keppel REIT on 12 of the 13 factors compared between the two stocks.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.

About Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.