Douglas Emmett (NYSE:DEI) & Service Properties Trust (NASDAQ:SVC) Head to Head Review

Service Properties Trust (NASDAQ:SVCGet Free Report) and Douglas Emmett (NYSE:DEIGet Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Service Properties Trust and Douglas Emmett, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Service Properties Trust 1 1 1 0 2.00
Douglas Emmett 1 5 1 0 2.00

Service Properties Trust presently has a consensus price target of $7.58, suggesting a potential upside of 52.58%. Douglas Emmett has a consensus price target of $13.67, suggesting a potential upside of 2.37%. Given Service Properties Trust’s higher probable upside, analysts plainly believe Service Properties Trust is more favorable than Douglas Emmett.

Valuation and Earnings

This table compares Service Properties Trust and Douglas Emmett’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Service Properties Trust $1.87 billion 0.44 -$32.78 million ($0.84) -5.92
Douglas Emmett $1.02 billion 2.19 -$42.71 million ($0.31) -43.16

Service Properties Trust has higher revenue and earnings than Douglas Emmett. Douglas Emmett is trading at a lower price-to-earnings ratio than Service Properties Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.6% of Service Properties Trust shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 1.4% of Service Properties Trust shares are held by insiders. Comparatively, 14.7% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Service Properties Trust pays an annual dividend of $0.80 per share and has a dividend yield of 16.1%. Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. Service Properties Trust pays out -95.2% of its earnings in the form of a dividend. Douglas Emmett pays out -245.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Service Properties Trust has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Profitability

This table compares Service Properties Trust and Douglas Emmett’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Service Properties Trust -7.29% -11.01% -1.84%
Douglas Emmett -5.40% -1.33% -0.54%

Summary

Douglas Emmett beats Service Properties Trust on 8 of the 13 factors compared between the two stocks.

About Service Properties Trust

(Get Free Report)

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

About Douglas Emmett

(Get Free Report)

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

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