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

Volatility and Risk

RLJ Lodging Trust has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, RLJ Lodging Trust’s peers have a beta of 1.00, indicating that their average share price is 0% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for RLJ Lodging Trust and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RLJ Lodging Trust 2 1 6 0 2.44
RLJ Lodging Trust Competitors 233 927 895 19 2.34

RLJ Lodging Trust presently has a consensus price target of $24.44, suggesting a potential upside of 13.17%. As a group, “Hospitality REITs” companies have a potential upside of 7.91%. Given RLJ Lodging Trust’s stronger consensus rating and higher possible upside, research analysts clearly believe RLJ Lodging Trust is more favorable than its peers.

Dividends

RLJ Lodging Trust pays an annual dividend of $0.88 per share and has a dividend yield of 4.1%. RLJ Lodging Trust pays out 60.7% 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 135.3% of their earnings in the form of a dividend. RLJ Lodging Trust has raised its dividend for 6 consecutive years.

Profitability

This table compares RLJ Lodging Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RLJ Lodging Trust 16.12% 8.16% 4.52%
RLJ Lodging Trust Competitors 10.37% 3.51% 3.07%

Institutional & Insider Ownership

76.7% of shares of all “Hospitality REITs” companies are owned by institutional investors. 2.3% of RLJ Lodging Trust shares are owned by company insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares RLJ Lodging Trust and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RLJ Lodging Trust $1.12 billion $355.90 million 14.90
RLJ Lodging Trust Competitors $1.09 billion $355.70 million -16.25

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

Summary

RLJ Lodging Trust beats its peers on 11 of the 15 factors compared.

RLJ Lodging Trust Company Profile

RLJ Lodging Trust is a self-administered real estate investment trust. The Company is engaged in the acquisition of focused-service and compact full-service hotels. As of December 31, 2016, the Company owned 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia, and an interest in one mortgage loan secured by a hotel. Its hotels’ brand affiliations include Residence Inn, Courtyard, SpringHill Suites, Fairfield Inn & Suites, Marriott, Renaissance, Hilton Garden Inn, Hampton Inn/Hampton Inn & Suites, Embassy Suites, DoubleTree, Homewood Suites, Hilton, Hyatt House, Hyatt Place and Hyatt/Hyatt Centric. Its operating partnership is RLJ Lodging Trust, L.P. Its properties include Courtyard San Francisco, Courtyard Boulder Longmont, Residence Inn Longmont Boulder, DoubleTree Grand Key Resort, Courtyard Atlanta Buckhead, Courtyard Chicago Southeast Hammond, Courtyard Louisville Northeast, DoubleTree Hotel Columbia and Residence Inn Detroit Novi.

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