LaSalle Hotel Properties (LHO) vs. Apple Hospitality REIT (APLE) Critical Survey
LaSalle Hotel Properties (NYSE: LHO) and Apple Hospitality REIT (NYSE:APLE) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.
Risk & Volatility
LaSalle Hotel Properties has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for LaSalle Hotel Properties and Apple Hospitality REIT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LaSalle Hotel Properties||2||10||1||0||1.92|
|Apple Hospitality REIT||1||3||1||0||2.00|
LaSalle Hotel Properties currently has a consensus price target of $28.46, indicating a potential upside of 1.60%. Apple Hospitality REIT has a consensus price target of $18.25, indicating a potential upside of 2.01%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Apple Hospitality REIT is more favorable than LaSalle Hotel Properties.
Earnings & Valuation
This table compares LaSalle Hotel Properties and Apple Hospitality REIT’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LaSalle Hotel Properties||$1.18 billion||2.69||$371.93 million||$2.69||10.41|
|Apple Hospitality REIT||$1.18 billion||3.38||$420.26 million||$0.80||22.36|
LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.
LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.7%. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Apple Hospitality REIT pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apple Hospitality REIT has increased its dividend for 5 consecutive years. Apple Hospitality REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
47.9% of Apple Hospitality REIT shares are held by institutional investors. 0.4% of LaSalle Hotel Properties shares are held by insiders. Comparatively, 6.3% of Apple Hospitality REIT shares are held 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.
This table compares LaSalle Hotel Properties and Apple Hospitality REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LaSalle Hotel Properties||27.85%||13.05%||8.48%|
|Apple Hospitality REIT||14.97%||5.05%||3.57%|
Apple Hospitality REIT beats LaSalle Hotel Properties on 9 of the 15 factors compared between the two stocks.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
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 December 31, 2016, the Company owned 235 hotels with an aggregate of 30,073 rooms located in urban, suburban and developing markets throughout 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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