LaSalle Hotel Properties (NYSE: LHO) and Hospitality Properties Trust (NASDAQ:HPT) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

75.6% of Hospitality Properties Trust shares are owned by institutional investors. 0.4% of LaSalle Hotel Properties shares are owned by company insiders. Comparatively, 1.6% of Hospitality Properties Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for LaSalle Hotel Properties and Hospitality Properties Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LaSalle Hotel Properties 5 10 0 0 1.67
Hospitality Properties Trust 0 3 4 0 2.57

LaSalle Hotel Properties currently has a consensus price target of $28.47, suggesting a potential upside of 0.62%. Hospitality Properties Trust has a consensus price target of $32.20, suggesting a potential upside of 7.12%. Given Hospitality Properties Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Hospitality Properties Trust is more favorable than LaSalle Hotel Properties.

Earnings and Valuation

This table compares LaSalle Hotel Properties and Hospitality Properties Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LaSalle Hotel Properties $1.23 billion 2.61 $252.78 million $1.62 17.46
Hospitality Properties Trust $2.05 billion 2.41 $223.11 million $1.40 21.47

LaSalle Hotel Properties has higher earnings, but lower revenue than Hospitality Properties Trust. LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Hospitality Properties Trust, indicating that it is currently the more affordable of the two stocks.

Dividends

LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 6.9%. 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. Hospitality Properties Trust pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties has increased its dividend for 5 consecutive years.

Profitability

This table compares LaSalle Hotel Properties and Hospitality Properties Trust’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%
Hospitality Properties Trust 11.66% 8.79% 3.58%

Volatility & Risk

LaSalle Hotel Properties has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Summary

LaSalle Hotel Properties beats Hospitality Properties Trust on 9 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 Hospitality Properties Trust

Hospitality Properties Trust is a real estate investment trust. The Company’s segments include hotel investments, travel center investments and corporate. As of December 31, 2016, the Company owned 306 hotels with 46,583 rooms or suites, and 198 travel centers. As of December 31, 2016, the Company’s properties were located in 45 states in the United States, Canada and Puerto Rico. As of December 31, 2016, the Company’s hotels were operated as Courtyard by Marriott, Royal Sonesta, Sonesta Hotels & Resorts, Candlewood Suites, Residence Inn by Marriott, Sonesta ES Suites, Crowne Plaza Hotels & Resorts, Staybridge Suites, Hyatt Place, Wyndham Grand, Wyndham Hotels & Resorts, InterContinental Hotels & Resorts, Marriott Hotels and Resorts, the Clift Hotel, Radisson Hotels & Resorts, Kimpton Hotels & Restaurants, TownePlace Suites by Marriott, Hawthorn Suites, Country Inns & Suites by Carlson, Holiday Inn Hotels & Resorts, SpringHill Suites by Marriott, and Park Plaza Hotels & Resorts.

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