Rexford Industrial Realty (NYSE:REXR) and Host Hotels & Resorts (NASDAQ:HST) Critical Contrast

Host Hotels & Resorts (NASDAQ:HST – Get Free Report) and Rexford Industrial Realty (NYSE:REXR – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Profitability

This table compares Host Hotels & Resorts and Rexford Industrial Realty’s net margins, return on equity and return on assets.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Host Hotels & Resorts and Rexford Industrial Realty, as reported by MarketBeat.

Host Hotels & Resorts presently has a consensus price target of $20.43, indicating a potential upside of 6.73%. Rexford Industrial Realty has a consensus price target of $41.92, indicating a potential upside of 26.60%. Given Rexford Industrial Realty’s higher possible upside, analysts plainly believe Rexford Industrial Realty is more favorable than Host Hotels & Resorts.

Volatility and Risk

Host Hotels & Resorts has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

98.5% of Host Hotels & Resorts shares are held by institutional investors. Comparatively, 99.5% of Rexford Industrial Realty shares are held by institutional investors. 1.4% of Host Hotels & Resorts shares are held by insiders. Comparatively, 1.2% of Rexford Industrial Realty shares are held by 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 and Earnings

This table compares Host Hotels & Resorts and Rexford Industrial Realty”s revenue, earnings per share (EPS) and valuation.

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

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.2%. Rexford Industrial Realty pays an annual dividend of $1.74 per share and has a dividend yield of 5.3%. Host Hotels & Resorts pays out 72.7% of its earnings in the form of a dividend. Rexford Industrial Realty pays out 204.7% 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 has raised its dividend for 2 consecutive years and Rexford Industrial Realty has raised its dividend for 4 consecutive years. Rexford Industrial Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Host Hotels & Resorts beats Rexford Industrial Realty on 10 of the 18 factors compared between the two stocks.

About Host Hotels & Resorts

(Get Free Report)

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.

About Rexford Industrial Realty

(Get Free Report)

Rexford Industrial Realty, Inc. is a self-administered and self-managed real estate investment trust, which engages in owning and operating industrial properties in infill markets. The company was founded by Richard S. Ziman on January 18, 2013 and is headquartered in Los Angeles, CA.