Douglas Emmett (NYSE:DEI – Get Free Report) and Service Properties Trust (NASDAQ:SVC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Dividends
Douglas Emmett pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. Service Properties Trust pays an annual dividend of $0.80 per share and has a dividend yield of 16.2%. Douglas Emmett pays out -245.2% of its earnings in the form of a dividend. Service Properties Trust pays out -95.2% 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.
Volatility and Risk
Douglas Emmett has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Douglas Emmett | 1 | 5 | 1 | 0 | 2.00 |
| Service Properties Trust | 1 | 1 | 1 | 0 | 2.00 |
Douglas Emmett presently has a consensus price target of $13.67, suggesting a potential upside of 1.69%. Service Properties Trust has a consensus price target of $7.58, suggesting a potential upside of 53.51%. Given Service Properties Trust’s higher possible upside, analysts plainly believe Service Properties Trust is more favorable than Douglas Emmett.
Institutional and Insider Ownership
97.4% of Douglas Emmett shares are owned by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are owned by institutional investors. 14.7% of Douglas Emmett shares are owned by insiders. Comparatively, 1.4% of Service Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Douglas Emmett and Service Properties Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Douglas Emmett | -5.40% | -1.33% | -0.54% |
| Service Properties Trust | -7.29% | -11.01% | -1.84% |
Earnings and Valuation
This table compares Douglas Emmett and Service Properties Trust’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Douglas Emmett | $1.02 billion | 2.20 | -$42.71 million | ($0.31) | -43.35 |
| Service Properties Trust | $1.87 billion | 0.44 | -$32.78 million | ($0.84) | -5.88 |
Service Properties Trust has higher revenue and earnings than Douglas Emmett. Douglas Emmett is trading at a lower price-to-earnings ratio than Service Properties Trust, indicating that it is currently the more affordable of the two stocks.
Summary
Douglas Emmett beats Service Properties Trust on 8 of the 14 factors compared between the two stocks.
About Douglas Emmett
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
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