Contrasting Apple Hospitality REIT (APLE) & Its Rivals
Apple Hospitality REIT (NYSE: APLE) is one of 30 publicly-traded companies in the “Hospitality REITs” industry, but how does it compare to its competitors? We will compare Apple Hospitality REIT to related businesses based on the strength of its dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
This is a breakdown of recent ratings and price targets for Apple Hospitality REIT and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apple Hospitality REIT||0||4||1||0||2.20|
|Apple Hospitality REIT Competitors||130||922||986||23||2.44|
Apple Hospitality REIT presently has a consensus target price of $19.67, suggesting a potential upside of 2.81%. As a group, “Hospitality REITs” companies have a potential upside of 32.78%. Given Apple Hospitality REIT’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Apple Hospitality REIT has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares Apple Hospitality REIT and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Apple Hospitality REIT||$1.04 billion||$144.65 million||18.94|
|Apple Hospitality REIT Competitors||$1.19 billion||$144.24 million||-9.55|
Apple Hospitality REIT’s competitors have higher revenue, but lower earnings than Apple Hospitality REIT. Apple Hospitality REIT is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Insider & Institutional Ownership
49.2% of Apple Hospitality REIT shares are owned by institutional investors. Comparatively, 77.4% of shares of all “Hospitality REITs” companies are owned by institutional investors. 6.3% of Apple Hospitality REIT shares are owned by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.3%. Apple Hospitality REIT pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.1% and pay out 134.5% of their earnings in the form of a dividend. Apple Hospitality REIT is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares Apple Hospitality REIT and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apple Hospitality REIT||18.37%||6.46%||4.58%|
|Apple Hospitality REIT Competitors||8.59%||2.89%||2.32%|
Volatility and Risk
Apple Hospitality REIT has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT’s competitors have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.
Apple Hospitality REIT beats its competitors on 8 of the 15 factors compared.
About Apple Hospitality REIT
Apple Hospitality REIT, Inc. is a hospitality real estate investment trust. The Company invests in real estate, primarily in the lodging sector, in the United States. As of September 13, 2017, the Company owned 237 hotels, with more than 30,000 guestrooms, diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets across 33 states. As of December 31, 2016, the Company’s hotels included various brands, such as Hilton Garden Inn, Courtyard, Homewood Suites, Residence Inn, SpringHill Suites, TownePlace Suites, Fairfield Inn, Home2 Suites, Marriott, Embassy Suites, Hilton and Renaissance. As of December 31, 2016, the Company’s hotels were located in various states of the United States, such as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Texas, Utah and Virginia.
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