RLJ Lodging Trust (NYSE: RLJ) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it contrast to its rivals? We will compare RLJ Lodging Trust to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Volatility and Risk

RLJ Lodging Trust has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, RLJ Lodging Trust’s rivals have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.

Dividends

RLJ Lodging Trust pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. RLJ Lodging Trust pays out 30.3% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.3% and pay out 132.6% of their earnings in the form of a dividend. RLJ Lodging Trust has raised its dividend for 6 consecutive years.

Earnings & Valuation

This table compares RLJ Lodging Trust and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
RLJ Lodging Trust $1.12 billion $355.90 million 15.17
RLJ Lodging Trust Competitors $1.10 billion $338.63 million -14.47

RLJ Lodging Trust has higher revenue and earnings than its rivals. RLJ Lodging Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares RLJ Lodging Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RLJ Lodging Trust 16.12% 8.16% 4.52%
RLJ Lodging Trust Competitors 7.70% 1.75% 1.72%

Insider and Institutional Ownership

77.4% of shares of all “Hospitality REITs” companies are held by institutional investors. 2.3% of RLJ Lodging Trust shares are held by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for RLJ Lodging Trust and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RLJ Lodging Trust 2 3 6 0 2.36
RLJ Lodging Trust Competitors 234 938 908 22 2.34

RLJ Lodging Trust presently has a consensus target price of $24.09, indicating a potential upside of 9.50%. As a group, “Hospitality REITs” companies have a potential upside of 6.11%. Given RLJ Lodging Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe RLJ Lodging Trust is more favorable than its rivals.

Summary

RLJ Lodging Trust beats its rivals on 11 of the 15 factors compared.

RLJ Lodging Trust Company Profile

RLJ Lodging Trust is a self-administered real estate investment trust. The Company is engaged in the acquisition of focused-service and compact full-service hotels. As of December 31, 2016, the Company owned 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia, and an interest in one mortgage loan secured by a hotel. Its hotels’ brand affiliations include Residence Inn, Courtyard, SpringHill Suites, Fairfield Inn & Suites, Marriott, Renaissance, Hilton Garden Inn, Hampton Inn/Hampton Inn & Suites, Embassy Suites, DoubleTree, Homewood Suites, Hilton, Hyatt House, Hyatt Place and Hyatt/Hyatt Centric. Its operating partnership is RLJ Lodging Trust, L.P. Its properties include Courtyard San Francisco, Courtyard Boulder Longmont, Residence Inn Longmont Boulder, DoubleTree Grand Key Resort, Courtyard Atlanta Buckhead, Courtyard Chicago Southeast Hammond, Courtyard Louisville Northeast, DoubleTree Hotel Columbia and Residence Inn Detroit Novi.

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