Park Hotels & Resorts (NYSE:PK) versus Alexander’s (NYSE:ALX) Financial Review

Alexander’s (NYSE:ALX) and Park Hotels & Resorts (NYSE:PK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alexander’s	9.72%	17.38%	1.71%
Park Hotels & Resorts	-8.49%	-6.71%	-2.60%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Alexander’s and Park Hotels & Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander’s	0	2	0	0	2.00
Park Hotels & Resorts	2	10	1	0	1.92

Park Hotels & Resorts has a consensus price target of $12.95, indicating a potential downside of 9.50%. Given Park Hotels & Resorts’ higher probable upside, analysts plainly believe Park Hotels & Resorts is more favorable than Alexander’s.

Risk & Volatility

Alexander’s has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Park Hotels & Resorts has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

32.0% of Alexander’s shares are owned by institutional investors. Comparatively, 92.7% of Park Hotels & Resorts shares are owned by institutional investors. 26.4% of Alexander’s shares are owned by insiders. Comparatively, 2.5% of Park Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 6.8%. Park Hotels & Resorts pays an annual dividend of $1.00 per share and has a dividend yield of 7.0%. Alexander’s pays out 450.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts pays out -91.7% of its earnings in the form of a dividend. Alexander’s has raised its dividend for 1 consecutive years and Park Hotels & Resorts has raised its dividend for 1 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Alexander’s and Park Hotels & Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander’s	$213.18 million	6.38	$28.22 million	$4.00	66.52
Park Hotels & Resorts	$2.54 billion	1.13	-$283.00 million	($1.09)	-13.13

Alexander’s has higher earnings, but lower revenue than Park Hotels & Resorts. Park Hotels & Resorts is trading at a lower price-to-earnings ratio than Alexander’s, indicating that it is currently the more affordable of the two stocks.

Summary

Alexander’s beats Park Hotels & Resorts on 9 of the 16 factors compared between the two stocks.

About Alexander’s

Alexander’s, Inc. (NYSE: ALX) is a real estate investment trust (REIT), incorporated in Delaware, engaged in leasing, managing, developing and redeveloping its properties. All references to we, us, our, Company and Alexander’s refer to Alexander’s, Inc. and its consolidated subsidiaries. We are managed by, and our properties are leased and developed by, Vornado Realty Trust (Vornado) (NYSE: VNO). We have five properties in New York City.

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.