Apple Hospitality REIT (NYSE: APLE) is one of 29 public companies in the “Hospitality REITs” industry, but how does it contrast to its peers? We will compare Apple Hospitality REIT to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.

Institutional & Insider Ownership

49.1% of Apple Hospitality REIT shares are owned by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are owned by institutional investors. 6.3% of Apple Hospitality REIT shares are owned by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are owned 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.

Profitability

This table compares Apple Hospitality REIT and its peers’ 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%
Apple Hospitality REIT Competitors 8.06% 3.01% 2.39%

Volatility & Risk

Apple Hospitality REIT has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT’s peers have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Apple Hospitality REIT and its peers revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Apple Hospitality REIT $1.04 billion $144.65 million 23.59
Apple Hospitality REIT Competitors $1.19 billion $144.77 million -11.59

Apple Hospitality REIT’s peers have higher revenue and earnings than Apple Hospitality REIT. Apple Hospitality REIT is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. 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. As a group, “Hospitality REITs” companies pay a dividend yield of 5.4% and pay out 133.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and price targets for Apple Hospitality REIT and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple Hospitality REIT 0 3 1 0 2.25
Apple Hospitality REIT Competitors 120 784 873 21 2.44

As a group, “Hospitality REITs” companies have a potential upside of 5.14%. Given Apple Hospitality REIT’s peers stronger consensus rating and higher probable upside, analysts plainly believe Apple Hospitality REIT has less favorable growth aspects than its peers.

Summary

Apple Hospitality REIT peers beat Apple Hospitality REIT on 9 of the 15 factors compared.

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.

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