Park Hotels & Resorts (NYSE:PK – Get Free Report) and Alexander’s (NYSE:ALX – Get Free Report) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.
Profitability
This table compares Park Hotels & Resorts and Alexander’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Park Hotels & Resorts | -8.49% | -6.71% | -2.60% |
| Alexander’s | 9.72% | 17.38% | 1.71% |
Dividends
Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 7.0%. Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.8%. Park Hotels & Resorts pays out -91.7% of its earnings in the form of a dividend. Alexander’s pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts has increased its dividend for 1 consecutive years and Alexander’s has increased its dividend for 1 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Park Hotels & Resorts | 2 | 10 | 1 | 0 | 1.92 |
| Alexander’s | 0 | 2 | 0 | 0 | 2.00 |
Park Hotels & Resorts presently has a consensus price target of $12.95, indicating a potential downside of 9.50%. Given Park Hotels & Resorts’ higher possible upside, equities analysts clearly believe Park Hotels & Resorts is more favorable than Alexander’s.
Risk & Volatility
Park Hotels & Resorts has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Alexander’s has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
Insider and Institutional Ownership
92.7% of Park Hotels & Resorts shares are held by institutional investors. Comparatively, 32.0% of Alexander’s shares are held by institutional investors. 2.5% of Park Hotels & Resorts shares are held by insiders. Comparatively, 26.4% of Alexander’s shares are held 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.
Valuation and Earnings
This table compares Park Hotels & Resorts and Alexander’s”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Park Hotels & Resorts | $2.54 billion | 1.13 | -$283.00 million | ($1.09) | -13.13 |
| Alexander’s | $213.18 million | 6.38 | $28.22 million | $4.00 | 66.52 |
Alexander’s has lower revenue, but higher earnings than Park Hotels & Resorts. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.
Summary
Alexander’s beats Park Hotels & Resorts on 9 of the 16 factors compared between the two stocks.
About Park Hotels & Resorts
Park Hotels & Resorts, Inc. operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio. The company was founded by Conrad Hilton in 1919 and is headquartered in Tysons, VA.
About Alexander’s
Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.
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