Hodgson named his provisional 26-man England squad for Euro 2016 on Monday afternoon with both players reportedly competing for a place.
Only one made it in though, and Townsend was selected ahead of Walcott in the squad for the tournament.
It is hardly a surprising choice given the respective seasons the players have had, with the Magpies man starring in recent weeks and Walcott struggling.
And when asked about his decision Hodgson was insistent that there is no comparison between the two players.
"Walcott and Andros Townsend are not similar players,” he told BBC Sport.
“Townsend was unlucky to lose his place in the squad but since he has gone to Newcastle he has done very well. Walcott has not had regular games."
It will now be interesting to see if Townsend remains in the squad for the tournament this summer.
Hodgson will have to remove three players from his current 26-man selection and given his choices it will be a hard decision for him to make.
Marcus Rashford and Fabian Delph are likely to drop out, but after that who misses out is not so clear, and depending on what system England employ, Townsend could be one of those on the chopping block.