Service Properties Trust (SVC) Competitors

DiamondRock Hospitality (NYSE:DRH) and Service Properties Trust (NASDAQ:SVC) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, community ranking, risk, institutional ownership, earnings, analyst recommendations and media sentiment.

Is DRH or SVC a better dividend stock?

DiamondRock Hospitality pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Service Properties Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.5%. DiamondRock Hospitality pays out 42.9% of its earnings in the form of a dividend. Service Properties Trust pays out -2.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Service Properties Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do insiders and institutionals hold more shares of DRH or SVC?

77.6% of Service Properties Trust shares are held by institutional investors. 1.4% of DiamondRock Hospitality shares are held by insiders. Comparatively, 1.4% of Service Properties Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Which has more volatility and risk, DRH or SVC?

DiamondRock Hospitality has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Is DRH or SVC more profitable?

DiamondRock Hospitality has a net margin of 6.30% compared to Service Properties Trust's net margin of -12.87%. DiamondRock Hospitality's return on equity of 4.25% beat Service Properties Trust's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
DiamondRock Hospitality	6.30%	4.25%	2.18%
Service Properties Trust	-12.87%	-22.67%	-3.37%

Which has higher earnings and valuation, DRH or SVC?

DiamondRock Hospitality has higher earnings, but lower revenue than Service Properties Trust. Service Properties Trust is trading at a lower price-to-earnings ratio than DiamondRock Hospitality, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DiamondRock Hospitality	$1.07B	1.59	$86.34M	$0.28	29.34
Service Properties Trust	$1.87B	0.24	-$32.78M	-$1.47	-1.83

Do analysts prefer DRH or SVC?

DiamondRock Hospitality currently has a consensus target price of $10.05, suggesting a potential upside of 22.34%. Service Properties Trust has a consensus target price of $5.25, suggesting a potential upside of 95.17%. Given Service Properties Trust's higher possible upside, analysts clearly believe Service Properties Trust is more favorable than DiamondRock Hospitality.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DiamondRock Hospitality	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.25
Service Properties Trust	1 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.00

Does the MarketBeat Community favor DRH or SVC?

DiamondRock Hospitality received 112 more outperform votes than Service Properties Trust when rated by MarketBeat users. Likewise, 55.39% of users gave DiamondRock Hospitality an outperform vote while only 50.78% of users gave Service Properties Trust an outperform vote.

Company	Underperform	Outperform
DiamondRock Hospitality	Outperform Votes 406 55.39%	Underperform Votes 327 44.61%
Service Properties Trust	Outperform Votes 294 50.78%	Underperform Votes 285 49.22%

Does the media prefer DRH or SVC?

In the previous week, DiamondRock Hospitality had 2 more articles in the media than Service Properties Trust. MarketBeat recorded 9 mentions for DiamondRock Hospitality and 7 mentions for Service Properties Trust. Service Properties Trust's average media sentiment score of 0.83 beat DiamondRock Hospitality's score of 0.19 indicating that Service Properties Trust is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
DiamondRock Hospitality	2 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
Service Properties Trust	3 Very Positive mention(s)	3 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

DiamondRock Hospitality beats Service Properties Trust on 10 of the 18 factors compared between the two stocks.