Critical Review: Host Hotels & Resorts (NASDAQ:HST) & Ryman Hospitality Properties (NYSE:RHP)

Ryman Hospitality Properties (NYSE:RHP) and Host Hotels & Resorts (NASDAQ:HST) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Profitability

This table compares Ryman Hospitality Properties and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryman Hospitality Properties	14.84%	61.94%	6.69%
Host Hotels & Resorts	12.92%	10.72%	5.75%

Analyst Ratings

This is a breakdown of current ratings and price targets for Ryman Hospitality Properties and Host Hotels & Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryman Hospitality Properties	1	0	6	0	2.71
Host Hotels & Resorts	1	3	10	0	2.64

Ryman Hospitality Properties currently has a consensus target price of $128.57, suggesting a potential upside of 22.02%. Host Hotels & Resorts has a consensus target price of $21.39, suggesting a potential upside of 20.18%. Given Ryman Hospitality Properties’ stronger consensus rating and higher possible upside, equities analysts clearly believe Ryman Hospitality Properties is more favorable than Host Hotels & Resorts.

Volatility and Risk

Ryman Hospitality Properties has a beta of 1.65, suggesting that its share price is 65% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.

Institutional & Insider Ownership

94.5% of Ryman Hospitality Properties shares are owned by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are owned by institutional investors. 3.0% of Ryman Hospitality Properties shares are owned by company insiders. Comparatively, 1.3% of Host Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Ryman Hospitality Properties and Host Hotels & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryman Hospitality Properties	$2.32 billion	2.72	$311.22 million	$5.63	18.72
Host Hotels & Resorts	$5.58 billion	2.23	$740.00 million	$1.03	17.28

Host Hotels & Resorts has higher revenue and earnings than Ryman Hospitality Properties. Host Hotels & Resorts is trading at a lower price-to-earnings ratio than Ryman Hospitality Properties, indicating that it is currently the more affordable of the two stocks.

Dividends

Ryman Hospitality Properties pays an annual dividend of $4.60 per share and has a dividend yield of 4.4%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Ryman Hospitality Properties pays out 81.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels & Resorts pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Ryman Hospitality Properties beats Host Hotels & Resorts on 10 of the 16 factors compared between the two stocks.

About Ryman Hospitality Properties

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company's holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company's hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company's financial results.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Four Seasons, Swissôtel, ibis and Novotel, as well as independent brands.