Apple Hospitality REIT (NYSE: APLE) is one of 25 public companies in the “Hospitality REITs” industry, but how does it contrast to its rivals? We will compare Apple Hospitality REIT to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, earnings and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Apple Hospitality REIT and its rivals, as provided 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 129 816 895 21 2.43

Apple Hospitality REIT currently has a consensus target price of $19.67, suggesting a potential upside of 2.59%. As a group, “Hospitality REITs” companies have a potential upside of 7.46%. Given Apple Hospitality REIT’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Apple Hospitality REIT has less favorable growth aspects than its rivals.

Profitability

This table compares Apple Hospitality REIT and its rivals’ 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 9.66% 4.65% 3.05%

Insider and Institutional Ownership

49.8% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are held by institutional investors. 6.3% of Apple Hospitality REIT shares are held by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are held 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.

Valuation and Earnings

This table compares Apple Hospitality REIT and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Apple Hospitality REIT $1.04 billion $144.65 million 18.98
Apple Hospitality REIT Competitors $1.19 billion $144.77 million 52.65

Apple Hospitality REIT’s rivals have higher revenue and earnings than Apple Hospitality REIT. Apple Hospitality REIT is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Apple Hospitality REIT has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT’s rivals have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Dividends

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 5.3% and pay out 152.5% of their earnings in the form of a dividend. Apple Hospitality REIT is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

Apple Hospitality REIT rivals beat Apple Hospitality REIT on 9 of the 15 factors compared.

Apple Hospitality REIT Company Profile

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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