Urstadt Biddle Properties (NYSE:UBA) and LaSalle Hotel Properties (NYSE:LHO) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Dividends

Urstadt Biddle Properties pays an annual dividend of $1.08 per share and has a dividend yield of 5.2%. LaSalle Hotel Properties pays an annual dividend of $0.90 per share and has a dividend yield of 2.6%. Urstadt Biddle Properties pays out 93.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties pays out 36.4% of its earnings in the form of a dividend. Urstadt Biddle Properties has raised its dividend for 18 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Urstadt Biddle Properties and LaSalle Hotel Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Urstadt Biddle Properties $123.56 million 6.64 $52.93 million $1.15 17.99
LaSalle Hotel Properties $1.10 billion 3.41 $195.03 million $2.47 13.82

LaSalle Hotel Properties has higher revenue and earnings than Urstadt Biddle Properties. LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Urstadt Biddle Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Urstadt Biddle Properties and LaSalle Hotel Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urstadt Biddle Properties 0 2 0 0 2.00
LaSalle Hotel Properties 3 12 1 0 1.88

Urstadt Biddle Properties presently has a consensus target price of $21.50, indicating a potential upside of 3.91%. LaSalle Hotel Properties has a consensus target price of $28.68, indicating a potential downside of 15.96%. Given Urstadt Biddle Properties’ stronger consensus rating and higher probable upside, analysts plainly believe Urstadt Biddle Properties is more favorable than LaSalle Hotel Properties.

Institutional and Insider Ownership

58.2% of Urstadt Biddle Properties shares are held by institutional investors. Comparatively, 97.9% of LaSalle Hotel Properties shares are held by institutional investors. 20.4% of Urstadt Biddle Properties shares are held by insiders. Comparatively, 0.4% of LaSalle Hotel Properties shares are held by 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.

Risk and Volatility

Urstadt Biddle Properties has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500.

Profitability

This table compares Urstadt Biddle Properties and LaSalle Hotel Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urstadt Biddle Properties 28.07% 9.57% 3.76%
LaSalle Hotel Properties 7.08% 3.31% 2.14%

Summary

Urstadt Biddle Properties beats LaSalle Hotel Properties on 10 of the 17 factors compared between the two stocks.

Urstadt Biddle Properties Company Profile

Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 84 properties containing approximately 5.1 million square feet of space. Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. It has paid 194 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 24 consecutive years.

LaSalle Hotel Properties Company Profile

LaSalle Hotel Properties is a leading multi-operator real estate investment trust. The Company owns 41 properties, which are upscale, full-service hotels, totaling 10,452 guest rooms in 11 markets in seven states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale, full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging groups, including Access Hotels & Resorts, Accor, Benchmark Hospitality, Davidson Hotel Company, Evolution Hospitality, HEI Hotels & Resorts, Highgate Hotels, Hilton, Hyatt Hotels Corporation, IHG, JRK Hotel Group, Inc., Marriott International, Noble House Hotels & Resorts, Outrigger Lodging Services, Provenance Hotels, Two Roads Hospitality, and Viceroy Hotel Group.

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