WallStSmart

Diamondrock Hospitality Company Common Stock (DRH)vsRLJ Lodging Trust (RLJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

RLJ Lodging Trust generates 20% more annual revenue ($1.36B vs $1.14B). DRH leads profitability with a 13.5% profit margin vs 1.8%. RLJ appears more attractively valued with a PEG of 2.06. DRH earns a higher WallStSmart Score of 63/100 (C+).

DRH

Buy

63

out of 100

Grade: C+

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

RLJ

Hold

42

out of 100

Grade: D

Growth: 3.3Profit: 4.5Value: 6.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.60
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHUndervalued (+38.0%)

Margin of Safety

+38.0%

Fair Value

$16.17

Current Price

$13.26

$2.91 discount

UndervaluedFair: $16.17Overvalued
RLJUndervalued (+55.6%)

Margin of Safety

+55.6%

Fair Value

$18.93

Current Price

$12.32

$6.61 discount

UndervaluedFair: $18.93Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH3 strengths · Avg: 8.7/10
EPS GrowthGrowth
144.4%10/10

Earnings expanding 144.4% YoY

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

RLJ1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

DRH4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% 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

RLJ4 concerns · Avg: 3.5/10
PEG RatioValuation
2.064/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.6%4/10

3.6% revenue growth

Market CapQuality
$1.88B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.1%3/10

ROE of 1.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull 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, Revenue Growth, Market Cap. Thin 1.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

RLJ carries more volatility with a beta of 1.11 — expect wider price swings.

DRH is growing revenue faster at 4.1% — sustainability is the question.

RLJ generates stronger free cash flow (26M), providing more financial flexibility.

Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRH scores higher overall (63/100 vs 42/100). RLJ offers better value entry with a 55.6% 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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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.

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