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 institutional ownership, dividends, valuation, risk, analyst recommendations, earnings and profitability.
Analyst Ratings
This is a summary of recent ratings for DiamondRock Hospitality and CTO Realty Growth, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DiamondRock Hospitality | 0 | 7 | 3 | 0 | 2.30 |
| CTO Realty Growth | 0 | 2 | 3 | 1 | 2.83 |
DiamondRock Hospitality currently has a consensus target price of $11.65, suggesting a potential downside of 4.98%. CTO Realty Growth has a consensus target price of $23.67, suggesting a potential upside of 7.98%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, analysts plainly believe CTO Realty Growth is more favorable than DiamondRock Hospitality.
Dividends
Institutional and Insider Ownership
67.2% of CTO Realty Growth shares are owned by institutional investors. 0.9% of DiamondRock Hospitality shares are owned by company insiders. Comparatively, 4.5% of CTO Realty Growth shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares DiamondRock Hospitality and CTO Realty Growth”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DiamondRock Hospitality | $1.12 billion | 2.23 | $48.05 million | $0.47 | 26.09 |
| CTO Realty Growth | $154.91 million | 4.78 | $10.09 million | $0.21 | 104.37 |
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% |
Risk and Volatility
DiamondRock Hospitality has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, CTO Realty Growth has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.
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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