Analyzing FrontView REIT (NYSE:FVR) and Host Hotels & Resorts (NASDAQ:HST)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	-43.21%	-5.48%	-3.33%
Host Hotels & Resorts	11.12%	9.90%	5.07%

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 6.5%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 5.0%. FrontView REIT pays out -80.4% of its earnings in the form of a dividend. Host Hotels & Resorts pays out 85.1% 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 increased its dividend for 2 consecutive years. FrontView REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and target prices for FrontView REIT and Host Hotels & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	1	2	2	0	2.20
Host Hotels & Resorts	0	5	6	0	2.55

FrontView REIT currently has a consensus price target of $15.10, indicating a potential upside of 14.92%. Host Hotels & Resorts has a consensus price target of $17.50, indicating a potential upside of 8.56%. Given FrontView REIT’s higher probable upside, equities research analysts plainly believe FrontView REIT is more favorable than Host Hotels & Resorts.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$66.68 million	3.76	-$22.21 million	($1.07)	-12.28
Host Hotels & Resorts	$5.68 billion	1.95	$697.00 million	$0.94	17.15

Host Hotels & Resorts has higher revenue and earnings than FrontView REIT. FrontView REIT 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.

Institutional & Insider Ownership

98.5% of Host Hotels & Resorts shares are owned by institutional investors. 4.3% of FrontView REIT shares are owned by insiders. Comparatively, 1.4% of Host Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Host Hotels & Resorts beats FrontView REIT on 11 of the 16 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

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.