Contrasting LaSalle Hotel Properties (LHO) and Ashford Hospitality Prime (AHP)
LaSalle Hotel Properties (NYSE: LHO) and Ashford Hospitality Prime (NYSE:AHP) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Ashford Hospitality Prime pays an annual dividend of $0.64 per share and has a dividend yield of 6.4%. LaSalle Hotel Properties pays out 111.1% 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 177.8% 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 has increased its dividend for 5 consecutive years and Ashford Hospitality Prime has increased its dividend for 2 consecutive years. LaSalle Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares LaSalle Hotel Properties and Ashford Hospitality Prime’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LaSalle Hotel Properties||18.10%||8.31%||5.40%|
|Ashford Hospitality Prime||4.02%||4.88%||1.20%|
Risk and Volatility
LaSalle Hotel Properties has a beta of 1.18, indicating that its share price is 18% 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.
Insider and Institutional Ownership
69.5% of Ashford Hospitality Prime shares are held by institutional investors. 0.4% of LaSalle Hotel Properties shares are held by insiders. Comparatively, 10.0% of Ashford Hospitality Prime shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares LaSalle Hotel Properties and Ashford Hospitality Prime’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LaSalle Hotel Properties||$1.18 billion||2.69||$371.93 million||$1.62||17.28|
|Ashford Hospitality Prime||$407.02 million||0.77||$100.67 million||$0.36||27.78|
LaSalle Hotel Properties has higher revenue and earnings than Ashford Hospitality Prime. LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Ashford Hospitality Prime, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for LaSalle Hotel Properties and Ashford Hospitality Prime, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LaSalle Hotel Properties||2||9||1||0||1.92|
|Ashford Hospitality Prime||0||3||3||0||2.50|
LaSalle Hotel Properties presently has a consensus target price of $29.21, suggesting a potential upside of 4.35%. Ashford Hospitality Prime has a consensus target price of $13.40, suggesting a potential upside of 34.00%. Given Ashford Hospitality Prime’s stronger consensus rating and higher probable upside, analysts clearly believe Ashford Hospitality Prime is more favorable than LaSalle Hotel Properties.
LaSalle Hotel Properties beats Ashford Hospitality Prime on 12 of the 17 factors compared between the two stocks.
About LaSalle Hotel Properties
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.
About Ashford Hospitality Prime
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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