RLJ Lodging Trust (RLJ) versus Ashford Hospitality Prime (AHP) Financial Comparison
RLJ Lodging Trust (NYSE: RLJ) and Ashford Hospitality Prime (NYSE:AHP) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Institutional and Insider Ownership
95.4% of RLJ Lodging Trust shares are owned by institutional investors. Comparatively, 62.6% of Ashford Hospitality Prime shares are owned by institutional investors. 2.3% of RLJ Lodging Trust shares are owned by insiders. Comparatively, 10.0% of Ashford Hospitality Prime shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares RLJ Lodging Trust and Ashford Hospitality Prime’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RLJ Lodging Trust||$1.16 billion||3.27||$200.35 million||$1.13||19.19|
|Ashford Hospitality Prime||$405.86 million||0.72||$19.31 million||($0.28)||-32.89|
RLJ Lodging Trust has higher revenue and earnings than Ashford Hospitality Prime. Ashford Hospitality Prime is trading at a lower price-to-earnings ratio than RLJ Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
RLJ Lodging Trust has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Ashford Hospitality Prime has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.
This table compares RLJ Lodging Trust and Ashford Hospitality Prime’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RLJ Lodging Trust||12.30%||5.80%||3.04%|
|Ashford Hospitality Prime||-0.36%||-0.43%||-0.10%|
This is a breakdown of current ratings and price targets for RLJ Lodging Trust and Ashford Hospitality Prime, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RLJ Lodging Trust||1||5||6||0||2.42|
|Ashford Hospitality Prime||0||3||4||0||2.57|
RLJ Lodging Trust presently has a consensus target price of $24.00, indicating a potential upside of 10.70%. Ashford Hospitality Prime has a consensus target price of $13.40, indicating a potential upside of 45.49%. Given Ashford Hospitality Prime’s stronger consensus rating and higher probable upside, analysts clearly believe Ashford Hospitality Prime is more favorable than RLJ Lodging Trust.
RLJ Lodging Trust pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.9%. RLJ Lodging Trust pays out 38.9% of its earnings in the form of a dividend. Ashford Hospitality Prime pays out -228.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RLJ Lodging Trust has raised its dividend for 6 consecutive years and Ashford Hospitality Prime has raised its dividend for 2 consecutive years. Ashford Hospitality Prime is clearly the better dividend stock, given its higher yield and lower payout ratio.
RLJ Lodging Trust beats Ashford Hospitality Prime on 11 of the 17 factors compared between the two stocks.
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.
Ashford Hospitality Prime Company Profile
Ashford Hospitality Prime, Inc. invests in high revenue per available room (RevPAR), luxury hotels and resorts. The Company conducts its business and owns all of its assets through its operating partnership, Ashford Hospitality Prime Limited Partnership (Ashford Prime OP). The Company operates in the direct hotel investment segment of the hotel lodging industry. As of February 24, 2017, it owned interests in 11 hotel properties in six states, the District of Columbia and St. Thomas, the United States Virgin Islands with 3,702 total rooms, or 3,467 net rooms, excluding those attributable to its joint venture partner. The hotel properties in its portfolio are mainly located in the Unites States urban markets. The Company owns nine of its hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity. All of the hotels in the Company’s portfolio are asset-managed by Ashford Hospitality Advisors LLC.
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