Reviewing FelCor Lodging Trust (FCH) & LaSalle Hotel Properties (LHO)
FelCor Lodging Trust (NYSE: FCH) and LaSalle Hotel Properties (NYSE:LHO) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares FelCor Lodging Trust and LaSalle Hotel Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FelCor Lodging Trust||$828.93 million||1.21||$207.52 million||($0.49)||-14.73|
|LaSalle Hotel Properties||$1.18 billion||2.73||$371.93 million||$2.69||10.58|
LaSalle Hotel Properties has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging Trust is trading at a lower price-to-earnings ratio than LaSalle Hotel Properties, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.8% of FelCor Lodging Trust shares are held by institutional investors. 3.3% of FelCor Lodging Trust shares are held by company insiders. Comparatively, 0.4% of LaSalle Hotel Properties shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current recommendations and price targets for FelCor Lodging Trust and LaSalle Hotel Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|FelCor Lodging Trust||0||2||1||0||2.33|
|LaSalle Hotel Properties||2||10||1||0||1.92|
FelCor Lodging Trust currently has a consensus target price of $7.25, suggesting a potential upside of 0.42%. LaSalle Hotel Properties has a consensus target price of $28.46, suggesting a potential upside of 0.03%. Given FelCor Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe FelCor Lodging Trust is more favorable than LaSalle Hotel Properties.
FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.3%. FelCor Lodging Trust pays out -49.0% of its earnings in the form of a dividend. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FelCor Lodging Trust has increased its dividend for 2 consecutive years and LaSalle Hotel Properties has increased its dividend for 5 consecutive years. LaSalle Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
FelCor Lodging Trust has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.
This table compares FelCor Lodging Trust and LaSalle Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|FelCor Lodging Trust||-5.15%||-25.32%||-1.92%|
|LaSalle Hotel Properties||27.85%||13.05%||8.48%|
LaSalle Hotel Properties beats FelCor Lodging Trust on 10 of the 16 factors compared between the two stocks.
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.
LaSalle Hotel Properties Company Profile
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
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