Host Hotels & Resorts (NASDAQ:HST) and Essex Property Trust (NYSE:ESS) Head-To-Head Comparison

Host Hotels & Resorts (NASDAQ:HST) and Essex Property Trust (NYSE:ESS) are both large-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Profitability

This table compares Host Hotels & Resorts and Essex Property Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	12.92%	10.72%	5.75%
Essex Property Trust	31.55%	9.72%	4.36%

Volatility and Risk

Host Hotels & Resorts has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Essex Property Trust has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Insider & Institutional Ownership

98.5% of Host Hotels & Resorts shares are owned by institutional investors. Comparatively, 96.5% of Essex Property Trust shares are owned by institutional investors. 1.3% of Host Hotels & Resorts shares are owned by company insiders. Comparatively, 3.8% of Essex Property Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Host Hotels & Resorts	$5.58 billion	2.30	$740.00 million	$1.03	17.85
Essex Property Trust	$1.74 billion	11.22	$405.83 million	$8.56	35.51

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Host Hotels & Resorts and Essex Property Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	1	3	10	0	2.64
Essex Property Trust	1	12	6	0	2.26

Host Hotels & Resorts presently has a consensus target price of $21.32, suggesting a potential upside of 15.94%. Essex Property Trust has a consensus target price of $297.00, suggesting a potential downside of 2.29%. Given Host Hotels & Resorts’ stronger consensus rating and higher probable upside, research analysts plainly believe Host Hotels & Resorts is more favorable than Essex Property Trust.

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 4.4%. Essex Property Trust pays an annual dividend of $9.80 per share and has a dividend yield of 3.2%. Host Hotels & Resorts pays out 77.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust pays out 114.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Essex Property Trust has increased its dividend for 30 consecutive years. Host Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Host Hotels & Resorts beats Essex Property Trust on 11 of the 17 factors compared between the two stocks.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Four Seasons, Swissôtel, ibis and Novotel, as well as independent brands.

About Essex Property Trust

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 252 apartment communities comprising approximately 62,000 apartment homes with an additional property in active development.