Hersha Hospitality Trust (NYSE: HT) and Hospitality Properties Trust (NASDAQ:HPT) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
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%|
Institutional and Insider Ownership
98.5% of Hersha Hospitality Trust shares are held by institutional investors. Comparatively, 75.4% of Hospitality Properties Trust shares are held by institutional investors. 8.1% of Hersha Hospitality Trust shares are held by company insiders. Comparatively, 1.6% of Hospitality Properties Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of recent ratings and target prices for Hersha Hospitality Trust and Hospitality Properties Trust, as reported 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|
Hersha Hospitality Trust presently has a consensus price target of $19.40, indicating a potential upside of 9.30%. Hospitality Properties Trust has a consensus price target of $31.71, indicating a potential upside of 17.81%. Given Hospitality Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Hospitality Properties Trust is more favorable than Hersha Hospitality Trust.
Risk & Volatility
Hersha Hospitality Trust has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Valuation & Earnings
This table compares Hersha Hospitality Trust and Hospitality Properties Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hersha Hospitality Trust||$466.63 million||1.58||$116.98 million||$2.15||8.26|
|Hospitality Properties Trust||$2.05 billion||2.16||$223.11 million||$1.40||19.23|
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.
Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.3%. Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.7%. 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.
Hersha Hospitality Trust beats Hospitality Properties Trust on 9 of the 16 factors compared between the two stocks.
Hersha Hospitality Trust Company Profile
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.
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.
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