Analyzing HG (OTCMKTS:STLY) & Host Hotels & Resorts (NASDAQ:HST)

HG (OTCMKTS:STLY) and Host Hotels & Resorts (NASDAQ:HST) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares HG and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HG	-3.02%	-1.05%	-0.74%
Host Hotels & Resorts	13.70%	11.08%	6.07%

Institutional & Insider Ownership

1.7% of HG shares are owned by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are owned by institutional investors. 36.1% of HG shares are owned by company insiders. Comparatively, 1.3% of Host Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for HG and Host Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HG	0	0	0	0	N/A
Host Hotels & Resorts	1	4	10	0	2.60

Host Hotels & Resorts has a consensus price target of $21.00, suggesting a potential upside of 15.83%. Given Host Hotels & Resorts’ higher probable upside, analysts clearly believe Host Hotels & Resorts is more favorable than HG.

Valuation & Earnings

This table compares HG and Host Hotels & Resorts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HG	$11.11 million	1.55	-$820,000.00	N/A	N/A
Host Hotels & Resorts	$5.47 billion	2.34	$740.00 million	$1.02	17.77

Host Hotels & Resorts has higher revenue and earnings than HG.

Risk & Volatility

HG has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Summary

Host Hotels & Resorts beats HG on 10 of the 11 factors compared between the two stocks.

About HG

HG Holdings, Inc. engages in the title insurance and real estate businesses in the United States. It operates through four segments: Title Insurance Services, Reinsurance, Management Services, and Real Estate. The company provides title insurance, closing and/or escrow, and similar or related services in connection with residential and commercial real estate transactions. It also owns and operates a portfolio of single-tenant properties leased for the occupancy by U.S. government tenant agencies and sub-agencies, such as the Federal Bureau of Investigation, the Department of Veterans affairs, the Drug Enforcement Administration, Immigration & Customs Enforcement, the Social Security Administration, and the Department of Transportation. In addition, the company provides excess-of-loss reinsurance coverage related to catastrophic weather risk in Texas; and management advisory services, such as formation, operational, and restructuring services. The company was formerly known as Stanley Furniture Company, Inc. and changed its name to HG Holdings, Inc. in March 2018. HG Holdings, Inc. was incorporated in 1984 and is headquartered in Charlotte, North Carolina.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is an S&P 500 company and is the largest lodging real estate investment trust and one of the largest owners of luxury and upper-upscale hotels. The Company currently owns 72 properties in the United States and five properties internationally totaling approximately 42,000 rooms. The Company also holds non-controlling interests in seven domestic and one international joint ventures. Guided by a disciplined approach to capital allocation and aggressive asset management, the Company partners with premium brands such as Marriott, Ritz-Carlton, Westin, Sheraton, W, St. Regis, The Luxury Collection, Hyatt, Fairmont, Hilton, Four Seasons, Swissôtel, ibis and Novotel, as well as independent brands.