WallStSmart

Diamondrock Hospitality Company Common Stock (DRH)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondrock Hospitality Company Common Stock generates 17% more annual revenue ($1.12B vs $960.13M). DRH leads profitability with a 9.1% profit margin vs 2.6%. DRH appears more attractively valued with a PEG of 2.52. DRH earns a higher WallStSmart Score of 46/100 (D+).

DRH

Hold

46

out of 100

Grade: D+

Growth: 2.7Profit: 5.5Value: 4.7Quality: 5.0

SHO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 6.0Value: 2.0Quality: 6.5
Piotroski: 3/9Altman Z: 1.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRHSignificantly Overvalued (-235.1%)

Margin of Safety

-235.1%

Fair Value

$2.99

Current Price

$9.56

$6.57 premium

UndervaluedFair: $2.99Overvalued
SHOSignificantly Overvalued (-3337.0%)

Margin of Safety

-3337.0%

Fair Value

$0.27

Current Price

$9.26

$8.99 premium

UndervaluedFair: $0.27Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRH1 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Return on EquityProfitability
121.0%10/10

Every $100 of equity generates 121 in profit

Areas to Watch

DRH4 concerns · Avg: 2.5/10
Market CapQuality
$1.97B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.7%3/10

ROE of 6.7% — below average capital efficiency

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

SHO4 concerns · Avg: 2.8/10
Market CapQuality
$1.75B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DRH

The strongest argument for DRH centers on Price/Book.

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, Return on Equity. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : DRH

The primary concerns for DRH are Market Cap, Return on Equity, PEG Ratio.

Bear Case : SHO

The primary concerns for SHO are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 231.5x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

DRH carries more volatility with a beta of 1.00 — expect wider price swings.

SHO is growing revenue faster at 10.3% — sustainability is the question.

DRH generates stronger free cash flow (47M), providing more financial flexibility.

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

Bottom Line

DRH scores higher overall (46/100 vs 44/100). Both earn "Hold" 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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Sunstone Hotel Investors Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.

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