Apple Hospitality REIT (NYSE: APLE) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it weigh in compared to its competitors? We will compare Apple Hospitality REIT to similar businesses based on the strength of its valuation, risk, earnings, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Apple Hospitality REIT and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Apple Hospitality REIT 14.97% 5.05% 3.57%
Apple Hospitality REIT Competitors 6.69% 2.03% 1.75%

Dividends

Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.4%. Apple Hospitality REIT pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.4% and pay out 134.4% of their earnings in the form of a dividend.

Volatility & Risk

Apple Hospitality REIT has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT’s competitors have a beta of 1.01, suggesting that their average stock price is 1% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Apple Hospitality REIT and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple Hospitality REIT 0 3 1 0 2.25
Apple Hospitality REIT Competitors 116 774 869 21 2.45

Apple Hospitality REIT presently has a consensus target price of $19.67, suggesting a potential upside of 4.78%. As a group, “Hospitality REITs” companies have a potential upside of 8.17%. Given Apple Hospitality REIT’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Apple Hospitality REIT has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Apple Hospitality REIT and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Apple Hospitality REIT $1.18 billion $420.26 million 23.46
Apple Hospitality REIT Competitors $1.09 billion $355.81 million -19.30

Apple Hospitality REIT has higher revenue and earnings than its competitors. Apple Hospitality REIT 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.

Institutional & Insider Ownership

49.1% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are held by institutional investors. 6.3% of Apple Hospitality REIT shares are held by company insiders. Comparatively, 5.5% of shares of all “Hospitality REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Apple Hospitality REIT beats its competitors on 8 of the 15 factors compared.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc. is a hospitality real estate investment trust. The Company invests in real estate, primarily in the lodging sector, in the United States. As of September 13, 2017, the Company owned 237 hotels, with more than 30,000 guestrooms, diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets across 33 states. As of December 31, 2016, the Company’s hotels included various brands, such as Hilton Garden Inn, Courtyard, Homewood Suites, Residence Inn, SpringHill Suites, TownePlace Suites, Fairfield Inn, Home2 Suites, Marriott, Embassy Suites, Hilton and Renaissance. As of December 31, 2016, the Company’s hotels were located in various states of the United States, such as Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Maryland, Michigan, Minnesota, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Texas, Utah and Virginia.

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