DiamondRock Hospitality Return On Asset vs. Return On Equity
| DRH-PA Preferred Stock | USD 26.26 0.20 0.77% |
For DiamondRock Hospitality profitability analysis, we use financial ratios and fundamental drivers that measure the ability of DiamondRock Hospitality to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well DiamondRock Hospitality utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between DiamondRock Hospitality's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of DiamondRock Hospitality over time as well as its relative position and ranking within its peers.
DiamondRock |
DiamondRock Hospitality Return On Equity vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining DiamondRock Hospitality's current stock value. Our valuation model uses many indicators to compare DiamondRock Hospitality value to that of its competitors to determine the firm's financial worth. DiamondRock Hospitality is one of the top stocks in return on asset category among its peers. It also is one of the top stocks in return on equity category among its peers reporting about 1.84 of Return On Equity per Return On Asset. Comparative valuation analysis is a catch-all model that can be used if you cannot value DiamondRock Hospitality by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for DiamondRock Hospitality's Preferred Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.DiamondRock Return On Equity vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
DiamondRock Hospitality |
| = | 0.0322 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
DiamondRock Hospitality |
| = | 0.0593 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
DiamondRock Return On Equity Comparison
DiamondRock Hospitality is currently under evaluation in return on equity category among its peers.
DiamondRock Hospitality Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in DiamondRock Hospitality, profitability is also one of the essential criteria for including it into their portfolios because, without profit, DiamondRock Hospitality will eventually generate negative long term returns. The profitability progress is the general direction of DiamondRock Hospitality's change in net profit over the period of time. It can combine multiple indicators of DiamondRock Hospitality, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
DiamondRock Hospitality Company is a self-advised real estate investment trust that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment. DiamondRock Hospitality operates under REITHotel Motel classification in the United States and is traded on New York Stock Exchange. It employs 31 people.
DiamondRock Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on DiamondRock Hospitality. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of DiamondRock Hospitality position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the DiamondRock Hospitality's important profitability drivers and their relationship over time.
Use DiamondRock Hospitality in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DiamondRock Hospitality position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DiamondRock Hospitality will appreciate offsetting losses from the drop in the long position's value.DiamondRock Hospitality Pair Trading
DiamondRock Hospitality Pair Trading Analysis
The ability to find closely correlated positions to DiamondRock Hospitality could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DiamondRock Hospitality when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DiamondRock Hospitality - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DiamondRock Hospitality to buy it.
The correlation of DiamondRock Hospitality is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DiamondRock Hospitality moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DiamondRock Hospitality moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DiamondRock Hospitality can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your DiamondRock Hospitality position
In addition to having DiamondRock Hospitality in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in DiamondRock Preferred Stock
To fully project DiamondRock Hospitality's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of DiamondRock Hospitality at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include DiamondRock Hospitality's income statement, its balance sheet, and the statement of cash flows.