Financial Review: Keppel REIT (OTCMKTS:KREVF) vs. Park Hotels & Resorts (NYSE:PK)

Keppel REIT (OTCMKTS:KREVF) and Park Hotels & Resorts (NYSE:PK) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Keppel REIT and Park Hotels & Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keppel REIT	$195.76 million	15.48	$81.16 million	N/A	N/A
Park Hotels & Resorts	$2.54 billion	0.82	$212.00 million	($0.07)	-149.26

Park Hotels & Resorts has higher revenue and earnings than Keppel REIT.

Volatility & Risk

Keppel REIT has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Institutional & Insider Ownership

92.7% of Park Hotels & Resorts shares are held by institutional investors. 1.9% of Park Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Keppel REIT and Park Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Keppel REIT	N/A	N/A	N/A
Park Hotels & Resorts	-0.47%	-1.25%	-0.48%

Analyst Ratings

This is a summary of current recommendations and price targets for Keppel REIT and Park Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keppel REIT	0	1	0	0	2.00
Park Hotels & Resorts	3	7	1	0	1.82

Park Hotels & Resorts has a consensus target price of $11.20, suggesting a potential upside of 7.20%. Given Park Hotels & Resorts’ higher possible upside, analysts plainly believe Park Hotels & Resorts is more favorable than Keppel REIT.

Summary

Park Hotels & Resorts beats Keppel REIT on 7 of the 12 factors compared between the two stocks.

About Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

About Park Hotels & Resorts

Park Hotels & Resorts, Inc. operates as a real estate investment trust, which owns and operates hotels and resorts. It operates through the Consolidated Hotels and Unconsolidated Hotels segments. Its portfolio of hotels and resorts include the Waldorf Astoria Hotels and Resorts, Conrad Hotels & Resorts, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hilton Garden Inn, Hampton by Hilton, and Curio. The company was founded by Conrad Hilton in 1919 and is headquartered in Tysons, VA.