Hersha Hospitality Trust (NYSE: HT) and Hospitality Properties Trust (NASDAQ:HPT) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
This is a summary of recent ratings and price targets for Hersha Hospitality Trust and Hospitality Properties Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hersha Hospitality Trust||2||4||5||0||2.27|
|Hospitality Properties Trust||1||3||4||0||2.38|
Insider & Institutional Ownership
98.6% of Hersha Hospitality Trust shares are held by institutional investors. Comparatively, 75.6% of Hospitality Properties Trust shares are held by institutional investors. 8.1% of Hersha Hospitality Trust shares are held by insiders. Comparatively, 1.6% of Hospitality Properties Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Hersha Hospitality Trust and Hospitality Properties Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hersha Hospitality Trust||$466.63 million||1.63||$116.98 million||$2.15||8.50|
|Hospitality Properties Trust||$2.05 billion||2.37||$223.11 million||$1.40||21.09|
Hospitality Properties Trust has higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than Hospitality Properties Trust, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Hersha Hospitality Trust has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.
Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.1%. Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.0%. Hersha Hospitality Trust pays out 52.1% of its earnings in the form of a dividend. Hospitality Properties Trust pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Hersha Hospitality Trust and Hospitality Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hersha Hospitality Trust||21.06%||13.52%||5.72%|
|Hospitality Properties Trust||11.66%||8.79%||3.58%|
Hersha Hospitality Trust beats Hospitality Properties Trust on 10 of the 16 factors compared between the two stocks.
About Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust (REIT). The Company invests primarily in institutional grade hotels in urban gateway markets, including New York, Washington, District of Columbia, Boston, Philadelphia, South Florida and select markets on the West Coast. As of July 20, 2017, the Company’s hotels included 51 hotels totaling 7,804 rooms located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s property brands include Marriott International, Hilton Hotels, Hyatt Hotels, Intercontinental Hotel Group, Wyndham Hotels and Hersha’s Independent Hotel Collection.
About Hospitality Properties Trust
Hospitality Properties Trust is a real estate investment trust. The Company’s segments include hotel investments, travel center investments and corporate. As of December 31, 2016, the Company owned 306 hotels with 46,583 rooms or suites, and 198 travel centers. As of December 31, 2016, the Company’s properties were located in 45 states in the United States, Canada and Puerto Rico. As of December 31, 2016, the Company’s hotels were operated as Courtyard by Marriott, Royal Sonesta, Sonesta Hotels & Resorts, Candlewood Suites, Residence Inn by Marriott, Sonesta ES Suites, Crowne Plaza Hotels & Resorts, Staybridge Suites, Hyatt Place, Wyndham Grand, Wyndham Hotels & Resorts, InterContinental Hotels & Resorts, Marriott Hotels and Resorts, the Clift Hotel, Radisson Hotels & Resorts, Kimpton Hotels & Restaurants, TownePlace Suites by Marriott, Hawthorn Suites, Country Inns & Suites by Carlson, Holiday Inn Hotels & Resorts, SpringHill Suites by Marriott, and Park Plaza Hotels & Resorts.
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