Host Hotels & Resorts (NASDAQ:HST) versus Howard Hughes (NYSE:HHH) Critical Survey

Host Hotels & Resorts (NASDAQ:HST) and Howard Hughes (NYSE:HHH) are both mid-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Host Hotels & Resorts	$5.68 billion	1.67	$740.00 million	$0.99	13.80
Howard Hughes	$1.75 billion	1.91	-$550.95 million	$3.94	16.81

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Host Hotels & Resorts and Howard Hughes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	1	6	8	0	2.47
Howard Hughes	0	0	1	0	3.00

Host Hotels & Resorts currently has a consensus target price of $19.17, indicating a potential upside of 40.31%. Howard Hughes has a consensus target price of $80.00, indicating a potential upside of 20.75%. Given Host Hotels & Resorts’ higher probable upside, equities analysts plainly believe Host Hotels & Resorts is more favorable than Howard Hughes.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	12.26%	10.37%	5.47%
Howard Hughes	6.57%	3.38%	1.03%

Insider and Institutional Ownership

98.5% of Host Hotels & Resorts shares are held by institutional investors. Comparatively, 93.8% of Howard Hughes shares are held by institutional investors. 1.3% of Host Hotels & Resorts shares are held by insiders. Comparatively, 33.0% of Howard Hughes shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Host Hotels & Resorts has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Howard Hughes has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500.

Summary

Host Hotels & Resorts beats Howard Hughes on 9 of the 14 factors compared between the two stocks.

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.

About Howard Hughes

Howard Hughes Holdings Inc., together with its subsidiaries, operates as a real estate development company in the United States. It operates in four segments: Operating Assets; Master Planned Communities (MPCs); Seaport; and Strategic Developments. The Operating Assets segment consists of developed or acquired retail, office, and multi-family properties along with other retail investments. Its MPCs segment develops, sells, and leases residential and commercial land designated for long-term community development projects in and around Las Vegas, Nevada; Houston, Texas; and Phoenix, Arizona. The Seaport segment is involved in the landlord operations, managed businesses, and events and sponsorships services of its restaurant, retail, and entertain properties in Pier 17, New York City; Historic Area/Uplands; and Tin Building, as well as in 250 Water Street and in the Jean-Georges restaurants. The Strategic Development segment develops and redevelops residential condominiums and commercial properties. It serves homebuilders. Howard Hughes Holdings Inc. was founded in 2010 and is headquartered in The Woodlands, Texas.