Analyzing Host Hotels & Resorts (NASDAQ:HST) & Clipper Realty (NYSE:CLPR)

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

Earnings & Valuation

This table compares Clipper Realty and Host Hotels & Resorts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$148.78 million	0.40	-$2.50 million	($0.25)	-14.78
Host Hotels & Resorts	$5.68 billion	1.66	$740.00 million	$0.99	13.73

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

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 10.3%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 5.9%. Clipper Realty pays out -152.0% of its earnings in the form of a dividend. Host Hotels & Resorts pays out 80.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Clipper Realty and Host Hotels & Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	0	0	0	0.00
Host Hotels & Resorts	1	6	8	0	2.47

Host Hotels & Resorts has a consensus target price of $19.17, indicating a potential upside of 41.04%. Given Host Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Host Hotels & Resorts is more favorable than Clipper Realty.

Risk and Volatility

Clipper Realty has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are owned by institutional investors. 50.8% of Clipper Realty 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-1.68%	-85.95%	-0.20%
Host Hotels & Resorts	12.26%	10.37%	5.47%

Summary

Host Hotels & Resorts beats Clipper Realty on 13 of the 16 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

About Host Hotels & Resorts

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.