Hospitality Properties Trust (NASDAQ: HPT) and Hersha Hospitality Trust (NYSE:HT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hospitality Properties Trust and Hersha Hospitality Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospitality Properties Trust 1 3 4 0 2.38
Hersha Hospitality Trust 2 4 5 0 2.27

Hospitality Properties Trust presently has a consensus target price of $31.17, indicating a potential upside of 6.81%. Hersha Hospitality Trust has a consensus target price of $19.40, indicating a potential upside of 8.32%. Given Hersha Hospitality Trust’s higher possible upside, analysts plainly believe Hersha Hospitality Trust is more favorable than Hospitality Properties Trust.

Profitability

This table compares Hospitality Properties Trust and Hersha Hospitality Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospitality Properties Trust 11.66% 8.79% 3.58%
Hersha Hospitality Trust 21.06% 13.52% 5.72%

Institutional & Insider Ownership

75.6% of Hospitality Properties Trust shares are owned by institutional investors. Comparatively, 98.6% of Hersha Hospitality Trust shares are owned by institutional investors. 1.6% of Hospitality Properties Trust shares are owned by insiders. Comparatively, 8.1% of Hersha Hospitality Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Hospitality Properties Trust and Hersha Hospitality Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hospitality Properties Trust $2.05 billion 2.34 $223.11 million $1.40 20.84
Hersha Hospitality Trust $466.63 million 1.60 $116.98 million $2.15 8.33

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.

Risk & Volatility

Hospitality Properties Trust has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Dividends

Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.1%. Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.3%. 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 pays out 52.1% of its earnings in the form of a dividend.

Summary

Hersha Hospitality Trust beats Hospitality Properties Trust on 10 of the 16 factors compared between the two stocks.

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.

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.

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