Diamondrock Hospitality Company (DRH)vsRLJ Lodging Trust (RLJ)
DRH
Diamondrock Hospitality Company
$14.52
0.00%
REAL ESTATE · Cap: $2.97B
RLJ
RLJ Lodging Trust
$12.59
-1.33%
REAL ESTATE · Cap: $1.93B
Smart Verdict
WallStSmart Research — data-driven comparison
RLJ Lodging Trust generates 22% more annual revenue ($1.38B vs $1.14B). DRH leads profitability with a 13.5% profit margin vs 2.0%. RLJ appears more attractively valued with a PEG of 2.06. DRH earns a higher WallStSmart Score of 63/100 (C+).
DRH
Buy63
out of 100
Grade: C+
RLJ
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+37.5%
Fair Value
$16.03
Current Price
$14.52
$1.51 discount
Margin of Safety
+55.4%
Fair Value
$18.86
Current Price
$12.59
$6.27 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 144.4% YoY
Reasonable price relative to book value
Strong operational efficiency at 23.0%
Reasonable price relative to book value
Areas to Watch
4.1% revenue growth
ROE of 6.9% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of 1.1% — below average capital efficiency
2.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DRH
The strongest argument for DRH centers on EPS Growth, Price/Book, Operating Margin.
Bull Case : RLJ
The strongest argument for RLJ centers on Price/Book.
Bear Case : DRH
The primary concerns for DRH are Revenue Growth, Return on Equity, PEG Ratio.
Bear Case : RLJ
The primary concerns for RLJ are PEG Ratio, Market Cap, Return on Equity. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
RLJ carries more volatility with a beta of 1.14 — expect wider price swings.
RLJ is growing revenue faster at 5.6% — sustainability is the question.
RLJ generates stronger free cash flow (94M), providing more financial flexibility.
Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
DRH scores higher overall (63/100 vs 50/100). RLJ offers better value entry with a 55.4% margin of safety. Both earn "Buy" and "Buy" 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
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.
Visit Website →RLJ Lodging Trust
REAL ESTATE · REIT - HOTEL & MOTEL · USA
RLJ Lodging Trust is a publicly traded and publicly traded real estate investment trust primarily owning premium brand, high margin, focused service and compact full service hotels.
Visit Website →Compare with Other REIT - HOTEL & MOTEL Stocks
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