Seek Returns logo

ARE vs. HST: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ARE and HST, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ARE’s market capitalization stands at 13.31 billion USD, while HST’s is 11.25 billion USD, indicating their market valuations are broadly comparable.

With betas of 1.27 for ARE and 1.35 for HST, both stocks show similar sensitivity to overall market movements.

SymbolAREHST
Company NameAlexandria Real Estate Equities, Inc.Host Hotels & Resorts, Inc.
CountryUSUS
SectorReal EstateReal Estate
IndustryREIT - OfficeREIT - Hotel & Motel
CEOPeter M. MogliaJames F. Risoleo
Price76.92 USD16.21 USD
Market Cap13.31 billion USD11.25 billion USD
Beta1.271.35
ExchangeNYSENASDAQ
IPO DateMay 28, 1997March 17, 1980
ADRNoNo

Historical Performance

This chart compares the performance of ARE and HST by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ARE vs. HST: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ARE

0.72%

REIT - Office Industry

Max
9.40%
Q3
3.15%
Median
0.71%
Q1
-2.53%
Min
-10.33%

Return on Equity is often not a primary performance indicator in the REIT - Office industry.

HST

10.11%

REIT - Hotel & Motel Industry

Max
5.84%
Q3
4.81%
Median
2.70%
Q1
1.61%
Min
-0.33%

Return on Equity is often not a primary performance indicator in the REIT - Hotel & Motel industry.

ARE vs. HST: A comparison of their ROE against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Return on Invested Capital

ARE

194.97%

REIT - Office Industry

Max
5.21%
Q3
3.70%
Median
2.50%
Q1
1.66%
Min
0.56%

Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Office industry.

HST

6.15%

REIT - Hotel & Motel Industry

Max
10.26%
Q3
7.65%
Median
5.09%
Q1
2.86%
Min
0.22%

Return on Invested Capital is often not a primary measure of capital efficiency in the REIT - Hotel & Motel industry.

ARE vs. HST: A comparison of their ROIC against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Net Profit Margin

ARE

5.70%

REIT - Office Industry

Max
21.26%
Q3
7.69%
Median
3.16%
Q1
-9.27%
Min
-30.12%

In the REIT - Office industry, Net Profit Margin is often not the primary profitability metric.

HST

11.66%

REIT - Hotel & Motel Industry

Max
12.16%
Q3
7.15%
Median
4.14%
Q1
3.12%
Min
-0.61%

In the REIT - Hotel & Motel industry, Net Profit Margin is often not the primary profitability metric.

ARE vs. HST: A comparison of their Net Profit Margin against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Operating Profit Margin

ARE

38.61%

REIT - Office Industry

Max
38.61%
Q3
26.61%
Median
20.01%
Q1
11.93%
Min
-1.11%

In the REIT - Office industry, Operating Profit Margin is often not the primary measure of operational efficiency.

HST

14.00%

REIT - Hotel & Motel Industry

Max
21.29%
Q3
16.09%
Median
12.29%
Q1
9.60%
Min
4.31%

In the REIT - Hotel & Motel industry, Operating Profit Margin is often not the primary measure of operational efficiency.

ARE vs. HST: A comparison of their Operating Margin against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Profitability at a Glance

SymbolAREHST
Return on Equity (TTM)0.72%10.11%
Return on Assets (TTM)0.37%5.23%
Return on Invested Capital (TTM)194.97%6.15%
Net Profit Margin (TTM)5.70%11.66%
Operating Profit Margin (TTM)38.61%14.00%
Gross Profit Margin (TTM)37.76%47.01%

Financial Strength

Current Ratio

ARE

--

REIT - Office Industry

Max
4.34
Q3
2.61
Median
1.46
Q1
0.88
Min
0.01

For the REIT - Office industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

HST

--

REIT - Hotel & Motel Industry

Max
1.70
Q3
1.68
Median
1.16
Q1
0.58
Min
0.21

For the REIT - Hotel & Motel industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ARE vs. HST: A comparison of their Current Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Debt-to-Equity Ratio

ARE

--

REIT - Office Industry

Max
2.25
Q3
1.66
Median
1.33
Q1
0.95
Min
0.63

Debt-to-Equity Ratio data for ARE is currently unavailable.

HST

0.85

REIT - Hotel & Motel Industry

Max
6.33
Q3
2.83
Median
0.69
Q1
0.49
Min
0.06

HST’s Debt-to-Equity Ratio of 0.85 is typical for the REIT - Hotel & Motel industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ARE vs. HST: A comparison of their D/E Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Interest Coverage Ratio

ARE

6.43

REIT - Office Industry

Max
2.60
Q3
1.69
Median
1.28
Q1
0.62
Min
-0.11

With an Interest Coverage Ratio of 6.43, ARE demonstrates a superior capacity to service its debt, placing it well above the typical range for the REIT - Office industry. This stems from either robust earnings or a conservative debt load.

HST

3.61

REIT - Hotel & Motel Industry

Max
4.53
Q3
2.71
Median
2.06
Q1
1.27
Min
0.76

HST’s Interest Coverage Ratio of 3.61 is in the upper quartile for the REIT - Hotel & Motel industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ARE vs. HST: A comparison of their Interest Coverage against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Financial Strength at a Glance

SymbolAREHST
Current Ratio (TTM)----
Quick Ratio (TTM)----
Debt-to-Equity Ratio (TTM)--0.85
Debt-to-Asset Ratio (TTM)--0.44
Net Debt-to-EBITDA Ratio (TTM)-0.233.18
Interest Coverage Ratio (TTM)6.433.61

Growth

The following charts compare key year-over-year (YoY) growth metrics for ARE and HST. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ARE vs. HST: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ARE vs. HST: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ARE vs. HST: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ARE

6.84%

REIT - Office Industry

Max
14.12%
Q3
6.26%
Median
4.71%
Q1
2.62%
Min
0.00%

With a Dividend Yield of 6.84%, ARE offers a more attractive income stream than most of its peers in the REIT - Office industry, signaling a strong commitment to shareholder returns.

HST

5.55%

REIT - Hotel & Motel Industry

Max
13.30%
Q3
7.63%
Median
5.23%
Q1
4.15%
Min
0.40%

HST’s Dividend Yield of 5.55% is consistent with its peers in the REIT - Hotel & Motel industry, providing a dividend return that is standard for its sector.

ARE vs. HST: A comparison of their Dividend Yield against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Dividend Payout Ratio

ARE

492.05%

REIT - Office Industry

Max
1,116.08%
Q3
556.10%
Median
233.84%
Q1
123.25%
Min
49.88%

ARE’s Dividend Payout Ratio of 492.05% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.

HST

93.21%

REIT - Hotel & Motel Industry

Max
237.59%
Q3
212.87%
Median
159.20%
Q1
101.81%
Min
53.93%

HST’s Dividend Payout Ratio of 93.21% is in the lower quartile for the REIT - Hotel & Motel industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

ARE vs. HST: A comparison of their Payout Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Dividend at a Glance

SymbolAREHST
Dividend Yield (TTM)6.84%5.55%
Dividend Payout Ratio (TTM)492.05%93.21%

Valuation

Price-to-Earnings Ratio

ARE

95.37

REIT - Office Industry

Max
90.97
Q3
72.34
Median
44.07
Q1
23.31
Min
19.29

The P/E Ratio is often not the primary metric for valuation in the REIT - Office industry.

HST

16.71

REIT - Hotel & Motel Industry

Max
56.01
Q3
32.82
Median
20.83
Q1
16.33
Min
13.60

The P/E Ratio is often not the primary metric for valuation in the REIT - Hotel & Motel industry.

ARE vs. HST: A comparison of their P/E Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Forward P/E to Growth Ratio

ARE

-0.95

REIT - Office Industry

Max
24.48
Q3
14.97
Median
1.22
Q1
0.24
Min
0.04

The Forward PEG Ratio is often not a primary valuation metric in the REIT - Office industry.

HST

17.24

REIT - Hotel & Motel Industry

Max
16.76
Q3
11.18
Median
3.56
Q1
1.52
Min
0.12

The Forward PEG Ratio is often not a primary valuation metric in the REIT - Hotel & Motel industry.

ARE vs. HST: A comparison of their Forward PEG Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Price-to-Sales Ratio

ARE

5.51

REIT - Office Industry

Max
5.80
Q3
5.05
Median
3.85
Q1
2.27
Min
1.19

ARE’s P/S Ratio of 5.51 is in the upper echelon for the REIT - Office industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

HST

1.94

REIT - Hotel & Motel Industry

Max
2.62
Q3
1.89
Median
1.15
Q1
0.81
Min
0.21

HST’s P/S Ratio of 1.94 is in the upper echelon for the REIT - Hotel & Motel industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ARE vs. HST: A comparison of their P/S Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Price-to-Book Ratio

ARE

0.60

REIT - Office Industry

Max
2.09
Q3
1.38
Median
0.98
Q1
0.74
Min
0.14

ARE’s P/B Ratio of 0.60 is in the lower quartile for the REIT - Office industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

HST

1.70

REIT - Hotel & Motel Industry

Max
1.65
Q3
1.05
Median
0.73
Q1
0.54
Min
0.45

At 1.70, HST’s P/B Ratio is at an extreme premium to the REIT - Hotel & Motel industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ARE vs. HST: A comparison of their P/B Ratio against their respective REIT - Office and REIT - Hotel & Motel industry benchmarks.

Valuation at a Glance

SymbolAREHST
Price-to-Earnings Ratio (P/E, TTM)95.3716.71
Forward PEG Ratio (TTM)-0.9517.24
Price-to-Sales Ratio (P/S, TTM)5.511.94
Price-to-Book Ratio (P/B, TTM)0.601.70
Price-to-Free Cash Flow Ratio (P/FCF, TTM)9.7013.37
EV-to-EBITDA (TTM)6.1610.03
EV-to-Sales (TTM)5.322.83