Strategic Hotels and Resorts (NYSE: BEE) and Apple Hospitality REIT (NYSE:APLE) are both mid-cap financials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Strategic Hotels and Resorts and Apple Hospitality REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Strategic Hotels and Resorts 0 0 0 0 N/A
Apple Hospitality REIT 0 3 1 0 2.25

Apple Hospitality REIT has a consensus target price of $20.00, suggesting a potential upside of 4.99%. Given Apple Hospitality REIT’s higher probable upside, analysts clearly believe Apple Hospitality REIT is more favorable than Strategic Hotels and Resorts.

Insider & Institutional Ownership

49.2% of Apple Hospitality REIT shares are held by institutional investors. 6.3% of Apple Hospitality REIT shares are held by company 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.

Profitability

This table compares Strategic Hotels and Resorts and Apple Hospitality REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Strategic Hotels and Resorts 6.40% 5.76% 2.43%
Apple Hospitality REIT 14.97% 5.05% 3.57%

Earnings and Valuation

This table compares Strategic Hotels and Resorts and Apple Hospitality REIT’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Strategic Hotels and Resorts N/A N/A N/A N/A N/A
Apple Hospitality REIT $1.18 billion 3.60 $420.26 million $0.80 23.81

Apple Hospitality REIT has higher revenue and earnings than Strategic Hotels and Resorts.

Dividends

Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.3%. Strategic Hotels and Resorts does not pay 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.

Summary

Apple Hospitality REIT beats Strategic Hotels and Resorts on 8 of the 11 factors compared between the two stocks.

About Strategic Hotels and Resorts

Strategic Hotels & Resorts, Inc. (SHR) is a self-administered and self-managed real estate investment trust (REIT). The Company acquires and asset manages hotels. The Company owns land held for development including 50.7 acres of oceanfront land in Nayarit, Mexico; 13.8 acres of land in Scottsdale, Arizona adjacent to its Four Seasons Resort Scottsdale at Troon North, and a 20,000 square-foot oceanfront land parcel in Santa Monica, California adjacent to its Loews Santa Monica Beach Hotel. The Company’s hotels are operated under the brands of Fairmont, Four Seasons, Hyatt, InterContinental, JW Marriott, Loews, Marriott, Montage, Ritz-Carlton and Westin. The Hotel del Coronado is operated by a specialty management company, KSL Resorts.

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 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.

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