Critical Analysis: Hersha Hospitality Trust (HT) and The Competition
Hersha Hospitality Trust (NYSE: HT) is one of 28 public companies in the “Hospitality REITs” industry, but how does it compare to its competitors? We will compare Hersha Hospitality Trust to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.
Risk and Volatility
Hersha Hospitality Trust has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust’s competitors have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.
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||22.77%||14.78%||6.13%|
|Hersha Hospitality Trust Competitors||5.91%||1.62%||1.63%|
Institutional and Insider Ownership
98.4% of Hersha Hospitality Trust shares are held by institutional investors. Comparatively, 77.4% of shares of all “Hospitality REITs” companies are held by institutional investors. 8.1% of Hersha Hospitality Trust shares are held by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Hersha Hospitality Trust and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hersha Hospitality Trust||1||4||4||0||2.33|
|Hersha Hospitality Trust Competitors||111||743||856||21||2.45|
Hersha Hospitality Trust currently has a consensus target price of $19.89, indicating a potential upside of 4.84%. As a group, “Hospitality REITs” companies have a potential upside of 5.48%. Given Hersha Hospitality Trust’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Hersha Hospitality Trust has less favorable growth aspects than its competitors.
Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 5.9%. Hersha Hospitality Trust pays out 48.7% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.2% and pay out 132.6% of their earnings in the form of a dividend. Hersha Hospitality Trust has increased 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.
Earnings and Valuation
This table compares Hersha Hospitality Trust and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hersha Hospitality Trust||$471.75 million||$138.69 million||8.25|
|Hersha Hospitality Trust Competitors||$1.09 billion||$355.81 million||-15.32|
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.
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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