Ryman Hospitality Properties (NYSE: RHP) and Ashford Hospitality Prime (NYSE:AHP) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, profitabiliy, risk, analyst recommendations, dividends and institutional ownership.

Institutional and Insider Ownership

90.8% of Ryman Hospitality Properties shares are owned by institutional investors. Comparatively, 68.0% of Ashford Hospitality Prime shares are owned by institutional investors. 3.4% of Ryman Hospitality Properties shares are owned by insiders. Comparatively, 23.7% of Ashford Hospitality Prime shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Ryman Hospitality Properties and Ashford Hospitality Prime’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryman Hospitality Properties 14.23% 46.25% 6.93%
Ashford Hospitality Prime 4.82% 6.10% 1.46%

Valuation and Earnings

This table compares Ryman Hospitality Properties and Ashford Hospitality Prime’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ryman Hospitality Properties $1.16 billion 2.89 $325.87 million $3.23 20.54
Ashford Hospitality Prime $403.42 million 0.66 $91.62 million $0.49 20.00

Ryman Hospitality Properties has higher revenue and earnings than Ashford Hospitality Prime. Ashford Hospitality Prime is trading at a lower price-to-earnings ratio than Ryman Hospitality Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Ryman Hospitality Properties and Ashford Hospitality Prime, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryman Hospitality Properties 1 2 2 0 2.20
Ashford Hospitality Prime 0 2 3 0 2.60

Ryman Hospitality Properties currently has a consensus price target of $59.40, indicating a potential downside of 10.47%. Ashford Hospitality Prime has a consensus price target of $14.75, indicating a potential upside of 50.51%. Given Ashford Hospitality Prime’s stronger consensus rating and higher possible upside, analysts plainly believe Ashford Hospitality Prime is more favorable than Ryman Hospitality Properties.

Volatility and Risk

Ryman Hospitality Properties has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Ashford Hospitality Prime has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Dividends

Ryman Hospitality Properties pays an annual dividend of $3.20 per share and has a dividend yield of 4.8%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.5%. Ryman Hospitality Properties pays out 99.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ashford Hospitality Prime pays out 130.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ryman Hospitality Properties has increased its dividend for 2 consecutive years and Ashford Hospitality Prime has increased its dividend for 3 consecutive years. Ashford Hospitality Prime is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Ryman Hospitality Properties beats Ashford Hospitality Prime on 10 of the 17 factors compared between the two stocks.

Ashford Hospitality Prime Company Profile

Ashford Hospitality Prime, Inc. invests in high revenue per available room (RevPAR), luxury hotels and resorts. The Company conducts its business and owns all of its assets through its operating partnership, Ashford Hospitality Prime Limited Partnership (Ashford Prime OP). The Company operates in the direct hotel investment segment of the hotel lodging industry. As of February 24, 2017, it owned interests in 11 hotel properties in six states, the District of Columbia and St. Thomas, the United States Virgin Islands with 3,702 total rooms, or 3,467 net rooms, excluding those attributable to its joint venture partner. The hotel properties in its portfolio are mainly located in the Unites States urban markets. The Company owns nine of its hotel properties directly, and the remaining two hotel properties through an investment in a majority-owned consolidated entity. All of the hotels in the Company’s portfolio are asset-managed by Ashford Hospitality Advisors LLC.

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