CorePoint Lodging (NYSE:CPLG) and Starwood Property Trust (NYSE:STWD) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
This is a summary of current ratings for CorePoint Lodging and Starwood Property Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Starwood Property Trust||0||0||4||0||3.00|
Valuation & Earnings
This table compares CorePoint Lodging and Starwood Property Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CorePoint Lodging||$862.00 million||0.65||-$262.00 million||$2.06||4.72|
|Starwood Property Trust||$1.11 billion||6.59||$385.83 million||$2.11||12.29|
Starwood Property Trust has higher revenue and earnings than CorePoint Lodging. CorePoint Lodging is trading at a lower price-to-earnings ratio than Starwood Property Trust, indicating that it is currently the more affordable of the two stocks.
This table compares CorePoint Lodging and Starwood Property Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Starwood Property Trust||34.61%||10.49%||0.72%|
Institutional and Insider Ownership
86.2% of CorePoint Lodging shares are held by institutional investors. Comparatively, 60.8% of Starwood Property Trust shares are held by institutional investors. 1.8% of CorePoint Lodging shares are held by company insiders. Comparatively, 3.1% of Starwood Property Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
CorePoint Lodging pays an annual dividend of $0.80 per share and has a dividend yield of 8.2%. Starwood Property Trust pays an annual dividend of $1.92 per share and has a dividend yield of 7.4%. CorePoint Lodging pays out 38.8% of its earnings in the form of a dividend. Starwood Property Trust pays out 91.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CorePoint Lodging has raised its dividend for 1 consecutive years. CorePoint Lodging is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
CorePoint Lodging has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Starwood Property Trust has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.
Starwood Property Trust beats CorePoint Lodging on 11 of the 17 factors compared between the two stocks.
CorePoint Lodging Company Profile
CorePoint Lodging Inc., a real estate investment trust company, operates midscale and upper-midscale select-service hotels primarily under the La Quinta brand. As of March 21, 2019, it had a portfolio of 313 hotels and approximately 40,000 rooms across 41 states in the United States. CorePoint Lodging Inc. is based in Irving, Texas.
Starwood Property Trust Company Profile
Starwood Property Trust, Inc. operates as a real estate investment trust (REIT) in the United States and Europe. It operates through three segments: Real Estate Lending, Real Estate Property, and Real Estate Investing and Servicing. The Real Estate Lending segment originates, acquires, finances, and manages commercial first mortgages, subordinated mortgages, mezzanine loans, preferred equity, commercial mortgage-backed securities (CMBS), residential mortgage-backed securities, residential mortgage loans, and other real estate and real estate-related debt investments. The Real Estate Property segment acquires and manages equity interests in commercial real estate properties, including multi-family properties. The Real Estate Investing and Servicing segment manages and works out problem assets; acquires and manages unrated, investment grade, and non-investment grade rated CMBS, including subordinated interests of securitization and re-securitization transactions; originates conduit loans for the primary purpose of selling these loans into securitization transactions; and acquires commercial real estate assets. The company qualifies as a REIT for federal income tax purposes and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. Starwood Property Trust, Inc. was founded in 2009 and is headquartered in Greenwich, Connecticut.
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