Hospitality Properties Trust (HPT) and FelCor Lodging Trust (FCH) Head to Head Analysis

Hospitality Properties Trust (NASDAQ: HPT) and FelCor Lodging Trust (NYSE:FCH) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Hospitality Properties Trust and FelCor Lodging Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospitality Properties Trust 0 3 4 0 2.57
FelCor Lodging Trust 0 2 0 0 2.00

Hospitality Properties Trust presently has a consensus price target of $32.33, suggesting a potential upside of 11.84%. FelCor Lodging Trust has a consensus price target of $7.00, suggesting a potential downside of 3.05%. Given Hospitality Properties Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Hospitality Properties Trust is more favorable than FelCor Lodging Trust.

Dividends

Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.2%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Hospitality Properties Trust pays out 176.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FelCor Lodging Trust pays out -49.0% of its earnings in the form of a dividend. Hospitality Properties Trust has raised its dividend for 2 consecutive years. Hospitality Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Hospitality Properties Trust and FelCor Lodging Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Hospitality Properties Trust $2.08 billion 2.28 $749.37 million $1.18 24.50
FelCor Lodging Trust $828.93 million 1.21 $207.52 million ($0.49) -14.73

Hospitality Properties Trust has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging 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.

Volatility & Risk

Hospitality Properties Trust has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Profitability

This table compares Hospitality Properties Trust and FelCor Lodging Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospitality Properties Trust 10.22% 7.53% 3.16%
FelCor Lodging Trust -0.66% N/A -0.35%

Institutional and Insider Ownership

76.3% of Hospitality Properties Trust shares are owned by institutional investors. Comparatively, 78.8% of FelCor Lodging Trust shares are owned by institutional investors. 1.7% of Hospitality Properties Trust shares are owned by insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Hospitality Properties Trust beats FelCor Lodging Trust on 12 of the 16 factors compared between the two stocks.

Hospitality Properties Trust Company Profile

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.

FelCor Lodging Trust Company Profile

FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.

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