DRH
DiamondRock Hospitality Company
REIT - Hotel & Motel
Market Cap$2.17B
5Y Perf.+78.1%
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Stock Comparison
DRH vs SHO
Revenue, margins, valuation, and 5-year total return — side by side.
SHO
Sunstone Hotel Investors, Inc.
REIT - Hotel & Motel
Market Cap$1.94B
5Y Perf.+15.8%
DRH vs SHO — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | DRH | SHO |
|---|---|---|
| Industry | REIT - Hotel & Motel | REIT - Hotel & Motel |
| Market Cap | $2.17B | $1.94B |
| Revenue (TTM) | $1.12B | $986M |
| Net Income (TTM) | $104M | $38M |
| Gross Margin | 43.0% | 20.1% |
| Operating Margin | 12.2% | 8.8% |
| Forward P/E | 20.3x | 129.9x |
| Total Debt | $1.19B | $925M |
| Cash & Equiv. | $68M | $109M |
DRH vs SHO — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
DRH
SHO
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| DiamondRock Hospita… (DRH) | 100 | 178.1 | +78.1% |
| Sunstone Hotel Inve… (SHO) | 100 | 115.8 | +15.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: DRH vs SHO
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: DRH leads in 6 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. Sunstone Hotel Investors, Inc. is the stronger pick specifically for growth and revenue expansion. As sector peers, any of these can serve as alternatives in the same allocation.
DRH
DiamondRock Hospitality Company
The Real Estate Income Play
DRH carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 1 yrs, beta 0.97, yield 4.4%
- Rev growth -0.8%, EPS growth 144.4%, 3Y rev CAGR 3.8%
- 43.2% 10Y total return vs SHO's 12.0%
Best for: income & stability and growth exposure
SHO
Sunstone Hotel Investors, Inc.
The Real Estate Income Play
SHO is the clearest fit if your priority is growth.
- 6.0% FFO/revenue growth vs DRH's -0.8%
Best for: growth
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | SHO | 6.0% FFO/revenue growth vs DRH's -0.8% |
| Value | DRH | Lower P/E (20.3x vs 129.9x) |
| Quality / Margins | DRH | 9.3% margin vs SHO's 3.8% |
| Stability / Safety | DRH | Beta 0.97 vs SHO's 1.00 |
| Dividends | DRH | 4.4% yield, 1-year raise streak, vs SHO's 4.3% |
| Momentum (1Y) | DRH | +49.3% vs SHO's +27.8% |
| Efficiency (ROA) | DRH | 3.4% ROA vs SHO's 1.3%, ROIC 4.6% vs 2.0% |
DRH vs SHO — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
DRH vs SHO — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLDRHLAGGINGSHO
SHOSunstone Hotel Invest…
0leads
DRHDiamondRock Hospitali…
4leads
6 Total Categories
CATEGORYLEADERvs SHOMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
DRH4/6
Valuation MetricsMultiples, price ratios, and targets
DRH5/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
DRH6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
DRH6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
DRH leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
DRH and SHO operate at a comparable scale, with $1.1B and $986M in trailing revenue. DRH is the more profitable business, keeping 9.3% of every revenue dollar as net income compared to SHO's 3.8%. On growth, SHO holds the edge at +11.0% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| RevenueTrailing 12 months | $1.1B | $986M |
| EBITDAEarnings before interest/tax | $280M | $190M |
| Net IncomeAfter-tax profit | $104M | $38M |
| Free Cash FlowCash after capex | $161M | $132M |
| Gross MarginGross profit ÷ Revenue | +43.0% | +20.1% |
| Operating MarginEBIT ÷ Revenue | +12.2% | +8.8% |
| Net MarginNet income ÷ Revenue | +9.3% | +3.8% |
| FCF MarginFCF ÷ Revenue | +14.3% | +13.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | +1.3% | +11.0% |
| EPS Growth (YoY)Latest quarter vs prior year | +56.6% | +7.0% |
DRH leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
DRH leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 24.3x trailing earnings, DRH trades at a 90% valuation discount to SHO's 242.3x P/E. On an enterprise value basis, DRH's 12.0x EV/EBITDA is more attractive than SHO's 13.2x.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| Market CapShares × price | $2.2B | $1.9B |
| Enterprise ValueMkt cap + debt − cash | $3.3B | $2.8B |
| Trailing P/EPrice ÷ TTM EPS | 24.25x | 242.32x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.27x | 129.91x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 11.97x | 13.18x |
| Price / SalesMarket cap ÷ Revenue | 1.94x | 2.02x |
| Price / BookPrice ÷ Book value/share | 1.53x | 1.02x |
| Price / FCFMarket cap ÷ FCF | 13.41x | 24.68x |
DRH leads this category, winning 5 of 6 comparable metrics.
Profitability & Efficiency
DRH leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
DRH delivers a 6.9% return on equity — every $100 of shareholder capital generates $7 in annual profit, vs $2 for SHO. SHO carries lower financial leverage with a 0.48x debt-to-equity ratio, signaling a more conservative balance sheet compared to DRH's 0.81x. On the Piotroski fundamental quality scale (0–9), DRH scores 7/9 vs SHO's 5/9, reflecting strong financial health.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| ROE (TTM)Return on equity | +6.9% | +1.9% |
| ROA (TTM)Return on assets | +3.4% | +1.3% |
| ROICReturn on invested capital | +4.6% | +2.0% |
| ROCEReturn on capital employed | +6.0% | +2.5% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 5 |
| Debt / EquityFinancial leverage | 0.81x | 0.48x |
| Net DebtTotal debt minus cash | $1.1B | $816M |
| Cash & Equiv.Liquid assets | $68M | $109M |
| Total DebtShort + long-term debt | $1.2B | $925M |
| Interest CoverageEBIT ÷ Interest expense | 2.57x | 1.58x |
DRH leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
DRH leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in DRH five years ago would be worth $12,014 today (with dividends reinvested), compared to $9,226 for SHO. Over the past 12 months, DRH leads with a +49.3% total return vs SHO's +27.8%. The 3-year compound annual growth rate (CAGR) favors DRH at 11.0% vs SHO's 3.1% — a key indicator of consistent wealth creation.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| YTD ReturnYear-to-date | +18.0% | +13.3% |
| 1-Year ReturnPast 12 months | +49.3% | +27.8% |
| 3-Year ReturnCumulative with dividends | +36.8% | +9.7% |
| 5-Year ReturnCumulative with dividends | +20.1% | -7.7% |
| 10-Year ReturnCumulative with dividends | +43.2% | +12.0% |
| CAGR (3Y)Annualised 3-year return | +11.0% | +3.1% |
DRH leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — DRH and SHO each lead in 1 of 2 comparable metrics.
Risk & Volatility
DRH is the less volatile stock with a 0.97 beta — it tends to amplify market swings less than SHO's 1.00 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.97x | 1.00x |
| 52-Week HighHighest price in past year | $10.98 | $10.33 |
| 52-Week LowLowest price in past year | $7.31 | $8.14 |
| % of 52W HighCurrent price vs 52-week peak | +97.2% | +99.2% |
| RSI (14)Momentum oscillator 0–100 | 64.2 | 65.6 |
| Avg Volume (50D)Average daily shares traded | 1.9M | 1.6M |
Evenly matched — DRH and SHO each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — DRH and SHO each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates DRH as "Hold" and SHO as "Hold". Consensus price targets imply 2.4% upside for SHO (target: $11) vs -2.6% for DRH (target: $10). For income investors, DRH offers the higher dividend yield at 4.42% vs SHO's 4.34%.
| Metric | DRHDiamondRock Hospi… | SHOSunstone Hotel In… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $10.39 | $10.50 |
| # AnalystsCovering analysts | 28 | 28 |
| Dividend YieldAnnual dividend ÷ price | +4.4% | +4.3% |
| Dividend StreakConsecutive years of raises | 1 | 4 |
| Dividend / ShareAnnual DPS | $0.47 | $0.44 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.2% | +5.6% |
Evenly matched — DRH and SHO each lead in 1 of 2 comparable metrics.
Key Takeaway
DRH leads in 4 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics. 2 categories are tied.
Best OverallDiamondRock Hospitality Com… (DRH)Leads 4 of 6 categories
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DRH vs SHO: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is DRH or SHO a better buy right now?
For growth investors, Sunstone Hotel Investors, Inc.
(SHO) is the stronger pick with 6. 0% revenue growth year-over-year, versus -0. 8% for DiamondRock Hospitality Company (DRH). DiamondRock Hospitality Company (DRH) offers the better valuation at 24. 3x trailing P/E (20. 3x forward), making it the more compelling value choice. Analysts rate DiamondRock Hospitality Company (DRH) a "Hold" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — DRH or SHO?
On trailing P/E, DiamondRock Hospitality Company (DRH) is the cheapest at 24.
3x versus Sunstone Hotel Investors, Inc. at 242. 3x. On forward P/E, DiamondRock Hospitality Company is actually cheaper at 20. 3x.
03Which is the better long-term investment — DRH or SHO?
Over the past 5 years, DiamondRock Hospitality Company (DRH) delivered a total return of +20.
1%, compared to -7. 7% for Sunstone Hotel Investors, Inc. (SHO). Over 10 years, the gap is even starker: DRH returned +43. 2% versus SHO's +12. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — DRH or SHO?
By beta (market sensitivity over 5 years), DiamondRock Hospitality Company (DRH) is the lower-risk stock at 0.
97β versus Sunstone Hotel Investors, Inc. 's 1. 00β — meaning SHO is approximately 3% more volatile than DRH relative to the S&P 500. On balance sheet safety, Sunstone Hotel Investors, Inc. (SHO) carries a lower debt/equity ratio of 48% versus 81% for DiamondRock Hospitality Company — giving it more financial flexibility in a downturn.
05Which is growing faster — DRH or SHO?
By revenue growth (latest reported year), Sunstone Hotel Investors, Inc.
(SHO) is pulling ahead at 6. 0% versus -0. 8% for DiamondRock Hospitality Company (DRH). On earnings-per-share growth, the picture is similar: DiamondRock Hospitality Company grew EPS 144. 4% year-over-year, compared to -69. 8% for Sunstone Hotel Investors, Inc.. Over a 3-year CAGR, DRH leads at 3. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — DRH or SHO?
DiamondRock Hospitality Company (DRH) is the more profitable company, earning 9.
1% net margin versus 2. 6% for Sunstone Hotel Investors, Inc. — meaning it keeps 9. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DRH leads at 14. 4% versus 7. 8% for SHO. At the gross margin level — before operating expenses — DRH leads at 55. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is DRH or SHO more undervalued right now?
On forward earnings alone, DiamondRock Hospitality Company (DRH) trades at 20.
3x forward P/E versus 129. 9x for Sunstone Hotel Investors, Inc. — 109. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHO: 2. 4% to $10. 50.
08Which pays a better dividend — DRH or SHO?
All stocks in this comparison pay dividends.
DiamondRock Hospitality Company (DRH) offers the highest yield at 4. 4%, versus 4. 3% for Sunstone Hotel Investors, Inc. (SHO).
09Is DRH or SHO better for a retirement portfolio?
For long-horizon retirement investors, DiamondRock Hospitality Company (DRH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
97), 4. 4% yield). Both have compounded well over 10 years (DRH: +43. 2%, SHO: +12. 0%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between DRH and SHO?
Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(DRH: 1.3% · SHO: 11.0%)Net Margin>
%
(DRH: 9.3% · SHO: 3.8%)P/E Ratio<
x
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