Ashford Hospitality Trust (AHT) & The Competition Critical Review

Ashford Hospitality Trust (NYSE: AHT) is one of 28 public companies in the “Hospitality REITs” industry, but how does it contrast to its rivals? We will compare Ashford Hospitality Trust to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Risk & Volatility

Ashford Hospitality Trust has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, Ashford Hospitality Trust’s rivals have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Profitability

This table compares Ashford Hospitality Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ashford Hospitality Trust -5.43% -10.41% -1.64%
Ashford Hospitality Trust Competitors 10.37% 3.51% 3.07%

Institutional & Insider Ownership

70.3% of Ashford Hospitality Trust shares are held by institutional investors. Comparatively, 76.7% of shares of all “Hospitality REITs” companies are held by institutional investors. 18.2% of Ashford Hospitality Trust shares are held by company insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ashford Hospitality Trust and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ashford Hospitality Trust $1.45 billion $394.52 million -4.84
Ashford Hospitality Trust Competitors $1.09 billion $355.70 million -15.69

Ashford Hospitality Trust has higher revenue and earnings than its rivals. Ashford Hospitality Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Ashford Hospitality Trust pays an annual dividend of $0.48 per share and has a dividend yield of 7.4%. Ashford Hospitality Trust pays out -35.8% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.5% and pay out 135.4% of their earnings in the form of a dividend. Ashford Hospitality Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ashford Hospitality Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ashford Hospitality Trust 0 3 3 0 2.50
Ashford Hospitality Trust Competitors 233 927 896 19 2.34

Ashford Hospitality Trust presently has a consensus price target of $7.46, indicating a potential upside of 15.10%. As a group, “Hospitality REITs” companies have a potential upside of 5.98%. Given Ashford Hospitality Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe Ashford Hospitality Trust is more favorable than its rivals.

Summary

Ashford Hospitality Trust beats its rivals on 10 of the 15 factors compared.

Ashford Hospitality Trust Company Profile

Ashford Hospitality Trust, Inc. is an externally-advised real estate investment trust (REIT). The Company is focused on investing in the hospitality industry with a focus on full-service upscale and upper-upscale hotels in the United States. The Company owns its lodging investments and conducts its business through Ashford Hospitality Limited Partnership (Ashford Trust OP), its operating partnership. The Company’s portfolio consists of 121 properties with over 25000 rooms; 86 hotel condominium units at WorldQuest Resort in Orlando, Florida; a 96.6% ownership in Ashford Quantitative Alternatives (U.S.), LP (the AQUA U.S. Fund); a 29.7% ownership in Ashford Inc., and a 13.3% ownership in OpenKey.

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