Critical Comparison: Apple Hospitality REIT (APLE) versus Its Competitors
Apple Hospitality REIT (NYSE: APLE) is one of 28 public companies in the “Hospitality REITs” industry, but how does it compare to its rivals? We will compare Apple Hospitality REIT to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.
Risk and Volatility
Apple Hospitality REIT has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT’s rivals have a beta of 0.98, suggesting that their average stock price is 2% less volatile than the S&P 500.
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 132.0% of their earnings in the form of a dividend.
This table compares Apple Hospitality REIT and its rivals’ 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||8.06%||3.01%||2.39%|
Earnings and Valuation
This table compares Apple Hospitality REIT and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Apple Hospitality REIT||$1.04 billion||$144.65 million||23.59|
|Apple Hospitality REIT Competitors||$1.19 billion||$144.77 million||17.96|
Apple Hospitality REIT’s rivals have higher revenue and earnings than Apple Hospitality REIT. Apple Hospitality REIT is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
This is a summary of recent ratings and target prices for Apple Hospitality REIT and its rivals, as reported 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||120||784||873||21||2.44|
Apple Hospitality REIT presently has a consensus target price of $19.67, suggesting a potential upside of 4.22%. As a group, “Hospitality REITs” companies have a potential upside of 7.99%. Given Apple Hospitality REIT’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Apple Hospitality REIT has less favorable growth aspects than its rivals.
Insider & Institutional Ownership
49.1% of Apple Hospitality REIT shares are owned by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are owned by institutional investors. 6.3% of Apple Hospitality REIT shares are owned by company insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Apple Hospitality REIT rivals beat Apple Hospitality REIT on 10 of the 15 factors compared.
Apple Hospitality REIT Company Profile
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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