Comparing Ashford Hospitality Prime (AHP) and Healthcare Trust Of America (HTA)
Ashford Hospitality Prime (NYSE: HTA) and Healthcare Trust Of America (NYSE:HTA) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.
This table compares Ashford Hospitality Prime and Healthcare Trust Of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashford Hospitality Prime||5.56%||6.28%||1.57%|
|Healthcare Trust Of America||11.65%||2.46%||1.28%|
Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.2%. Healthcare Trust Of America pays an annual dividend of $1.22 per share and has a dividend yield of 4.3%. Ashford Hospitality Prime pays out 39.5% of its earnings in the form of a dividend. Healthcare Trust Of America pays out 74.8% 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. Ashford Hospitality Prime has increased its dividend for 3 consecutive years and Healthcare Trust Of America has increased its dividend for 5 consecutive years. Ashford Hospitality Prime is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings for Ashford Hospitality Prime and Healthcare Trust Of America, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashford Hospitality Prime||0||1||1||0||2.50|
|Healthcare Trust Of America||0||8||3||0||2.27|
Ashford Hospitality Prime presently has a consensus price target of $12.00, suggesting a potential upside of 15.61%. Healthcare Trust Of America has a consensus price target of $30.73, suggesting a potential upside of 9.43%. Given Ashford Hospitality Prime’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Ashford Hospitality Prime is more favorable than Healthcare Trust Of America.
Valuation & Earnings
This table compares Ashford Hospitality Prime and Healthcare Trust Of America’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ashford Hospitality Prime||$414.06 million||0.81||$23.02 million||$1.62||6.41|
|Healthcare Trust Of America||$613.99 million||9.49||$63.91 million||$1.63||17.23|
Healthcare Trust Of America has higher revenue and earnings than Ashford Hospitality Prime. Ashford Hospitality Prime is trading at a lower price-to-earnings ratio than Healthcare Trust Of America, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.6% of Ashford Hospitality Prime shares are held by institutional investors. 10.0% of Ashford Hospitality Prime shares are held by insiders. Comparatively, 0.9% of Healthcare Trust Of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk & Volatility
Ashford Hospitality Prime has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Healthcare Trust Of America has a beta of 0.22, indicating that its stock price is 78% less volatile than the S&P 500.
Ashford Hospitality Prime beats Healthcare Trust Of America on 9 of the 17 factors compared between the two stocks.
Ashford Hospitality Prime Company Profile
Ashford Hospitality Prime is a real estate investment trust (REIT) focused on investing in luxury hotels and resorts.
Healthcare Trust Of America Company Profile
Healthcare Trust of America, Inc. (NYSE: HTA) is the largest dedicated owner and operator of medical office buildings in the United States, comprising over 24.2 million square feet of GLA, with over $7.0 billion invested primarily in medical office buildings. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level. Founded in 2006 and listed on the New York Stock Exchange in 2012, HTA has produced attractive returns for its stockholders that have significantly outperformed the S&P 500 and US REIT indices.
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