WallStSmart

Diamondrock Hospitality Company Common Stock (DRH)vsPark Hotels & Resorts Inc (PK)

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Smart Verdict

WallStSmart Research — data-driven comparison

Park Hotels & Resorts Inc generates 126% more annual revenue ($2.54B vs $1.12B). DRH leads profitability with a 9.3% profit margin vs -8.5%. PK appears more attractively valued with a PEG of 0.64. DRH earns a higher WallStSmart Score of 57/100 (C).

DRH

Buy

57

out of 100

Grade: C

Growth: 6.0Profit: 5.5Value: 6.0Quality: 6.0
Piotroski: 5/9Altman Z: 0.69

PK

Hold

49

out of 100

Grade: D+

Growth: 2.7Profit: 3.5Value: 7.0Quality: 3.5
Piotroski: 4/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+37.6%)

Margin of Safety

+37.6%

Fair Value

$16.07

Current Price

$11.61

$4.46 discount

UndervaluedFair: $16.07Overvalued
PKUndervalued (+23.6%)

Margin of Safety

+23.6%

Fair Value

$15.31

Current Price

$14.05

$1.26 discount

UndervaluedFair: $15.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH2 strengths · Avg: 9.0/10
EPS GrowthGrowth
75.0%10/10

Earnings expanding 75.0% YoY

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

PK2 strengths · Avg: 9.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

DRH4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

PK4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.313/10

Elevated debt levels

Return on EquityProfitability
-7.0%2/10

ROE of -7.0% — below average capital efficiency

Revenue GrowthGrowth
-1.1%2/10

Revenue declined 1.1%

EPS GrowthGrowth
-63.6%2/10

Earnings declined 63.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

The strongest argument for DRH centers on EPS Growth, Price/Book.

Bull Case : PK

The strongest argument for PK centers on Price/Book, PEG Ratio. PEG of 0.64 suggests the stock is reasonably priced for its growth.

Bear Case : DRH

The primary concerns for DRH are Revenue Growth, Return on Equity, PEG Ratio.

Bear Case : PK

The primary concerns for PK are Debt/Equity, Return on Equity, Revenue Growth.

Key Dynamics to Monitor

DRH profiles as a value stock while PK is a turnaround play — different risk/reward profiles.

PK carries more volatility with a beta of 1.37 — expect wider price swings.

DRH is growing revenue faster at 1.3% — sustainability is the question.

DRH generates stronger free cash flow (1M), providing more financial flexibility.

Bottom Line

DRH scores higher overall (57/100 vs 49/100). PK offers better value entry with a 23.6% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Diamondrock Hospitality Company Common Stock

REAL ESTATE · REIT - HOTEL & MOTEL · USA

DiamondRock Hospitality Company is a self-advising real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in major entry markets and destination resort locations.

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Park Hotels & Resorts Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Park Hotels & Resorts Inc. is a leading hotel investment and management company with a robust portfolio of premium hotels and resorts strategically located in both domestic and international markets. The firm focuses on operational excellence and strategic asset management to maximize shareholder value, partnering with renowned brands such as Marriott and Hilton. As the hospitality industry experiences a resurgence, Park Hotels & Resorts is poised for growth, drawing on its seasoned management team and disciplined investment strategy to capitalize on emerging opportunities in a competitive landscape.

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