Hersha Hospitality Trust (NYSE: HT) is one of 30 public companies in the “Hospitality REITs” industry, but how does it weigh in compared to its competitors? We will compare Hersha Hospitality Trust to related companies based on the strength of its valuation, institutional ownership, earnings, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings for Hersha Hospitality Trust and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hersha Hospitality Trust 1 5 5 0 2.36
Hersha Hospitality Trust Competitors 123 815 894 21 2.44

Hersha Hospitality Trust presently has a consensus target price of $19.60, suggesting a potential upside of 11.05%. As a group, “Hospitality REITs” companies have a potential upside of 32.26%. Given Hersha Hospitality Trust’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Hersha Hospitality Trust has less favorable growth aspects than its competitors.

Dividends

Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.3%. Hersha Hospitality Trust pays out 52.1% 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 139.3% of their earnings in the form of a dividend. Hersha Hospitality Trust has raised its dividend for 3 consecutive years. Hersha Hospitality Trust is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Hersha Hospitality Trust and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hersha Hospitality Trust $466.63 million $116.98 million 8.21
Hersha Hospitality Trust Competitors $1.19 billion $144.77 million -10.95

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

Risk & Volatility

Hersha Hospitality Trust has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust’s competitors have a beta of 0.92, meaning that their average share price is 8% less volatile than the S&P 500.

Institutional and Insider Ownership

98.5% of Hersha Hospitality Trust shares are owned by institutional investors. Comparatively, 77.4% of shares of all “Hospitality REITs” companies are owned by institutional investors. 8.1% of Hersha Hospitality Trust shares are owned by company insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are owned by company 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 Hersha Hospitality Trust and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hersha Hospitality Trust 21.06% 13.52% 5.72%
Hersha Hospitality Trust Competitors 8.68% 2.95% 2.37%

Summary

Hersha Hospitality Trust beats its competitors on 9 of the 15 factors compared.

About Hersha Hospitality Trust

Hersha Hospitality Trust is a self-advised real estate investment trust (REIT). The Company invests primarily in institutional grade hotels in urban gateway markets, including New York, Washington, District of Columbia, Boston, Philadelphia, South Florida and select markets on the West Coast. As of July 20, 2017, the Company’s hotels included 51 hotels totaling 7,804 rooms located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s property brands include Marriott International, Hilton Hotels, Hyatt Hotels, Intercontinental Hotel Group, Wyndham Hotels and Hersha’s Independent Hotel Collection.

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