Analyzing Apple Hospitality REIT (APLE) and FelCor Lodging Trust (FCH)
Apple Hospitality REIT (NYSE: APLE) and FelCor Lodging Trust (NYSE:FCH) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.
Valuation & Earnings
This table compares Apple Hospitality REIT and FelCor Lodging Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Apple Hospitality REIT||$1.18 billion||3.57||$420.26 million||$0.80||23.58|
|FelCor Lodging Trust||$828.93 million||1.22||$207.52 million||($0.49)||-14.90|
Apple Hospitality REIT has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging Trust 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.
This is a breakdown of recent ratings and target prices for Apple Hospitality REIT and FelCor Lodging Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apple Hospitality REIT||0||3||1||0||2.25|
|FelCor Lodging Trust||0||2||0||0||2.00|
Apple Hospitality REIT presently has a consensus target price of $20.00, suggesting a potential upside of 6.04%. FelCor Lodging Trust has a consensus target price of $7.00, suggesting a potential downside of 4.11%. Given Apple Hospitality REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Apple Hospitality REIT is more favorable than FelCor Lodging Trust.
Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. 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. FelCor Lodging Trust pays out -49.0% of its earnings in the form of a dividend. Apple Hospitality REIT has raised its dividend for 2 consecutive years. Apple Hospitality REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Apple Hospitality REIT and FelCor Lodging Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apple Hospitality REIT||14.97%||5.05%||3.57%|
|FelCor Lodging Trust||-0.66%||N/A||-0.35%|
Volatility & Risk
Apple Hospitality REIT has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.
Insider and Institutional Ownership
49.2% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 78.8% of FelCor Lodging Trust shares are held by institutional investors. 6.3% of Apple Hospitality REIT shares are held by insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Apple Hospitality REIT beats FelCor Lodging Trust on 13 of the 16 factors compared between the two stocks.
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.
FelCor Lodging Trust Company Profile
FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.
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