Host Hotels and Resorts (NYSE: HST) and Apple Hospitality REIT (NYSE:APLE) are both mid-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Host Hotels and Resorts and Apple Hospitality REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Host Hotels and Resorts||11.11%||8.44%||5.11%|
|Apple Hospitality REIT||18.37%||6.46%||4.58%|
50.9% of Apple Hospitality REIT shares are owned by institutional investors. 1.7% of Host Hotels and Resorts shares are owned by company insiders. Comparatively, 6.3% of Apple Hospitality REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Host Hotels and Resorts and Apple Hospitality REIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Host Hotels and Resorts||$5.43 billion||2.77||$762.00 million||$0.81||25.14|
|Apple Hospitality REIT||$1.04 billion||4.19||$144.65 million||$1.01||19.36|
Host Hotels and Resorts has higher revenue and earnings than Apple Hospitality REIT. Apple Hospitality REIT is trading at a lower price-to-earnings ratio than Host Hotels and Resorts, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Host Hotels and Resorts and Apple Hospitality REIT, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Host Hotels and Resorts||1||6||8||0||2.47|
|Apple Hospitality REIT||0||4||1||0||2.20|
Host Hotels and Resorts presently has a consensus target price of $20.50, suggesting a potential upside of 0.69%. Apple Hospitality REIT has a consensus target price of $20.00, suggesting a potential upside of 2.30%. Given Apple Hospitality REIT’s higher probable upside, analysts clearly believe Apple Hospitality REIT is more favorable than Host Hotels and Resorts.
Host Hotels and Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.1%. Host Hotels and Resorts pays out 98.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apple Hospitality REIT pays out 118.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Host Hotels and Resorts has raised its dividend for 2 consecutive years.
Host Hotels and Resorts beats Apple Hospitality REIT on 9 of the 16 factors compared between the two stocks.
About Host Hotels and Resorts
Host Hotels & Resorts, Inc. (Host Inc.) operates as a self-managed and self-administered real estate investment trust (REIT). The Company operates through hotel ownership segment. The Company operates through hotel ownership segment. The Company owned properties and conducted operations through Host Hotels & Resorts, L.P. (Host L.P.), of which Host Inc. was the general partner and of which it held approximately 99% of the partnership interests (OP units), as of December 31, 2016. As of February 20, 2017, its lodging portfolio consisted of 96 primarily luxury and upper-upscale hotels containing approximately 53,500 rooms, with the majority located in the United States, and with seven of the properties located outside of the United States in Australia, Brazil, Canada and Mexico. In addition, it owns non-controlling interests in two international joint ventures: approximately a 33% interest in a joint venture in Europe, and a 9% indirect interest, through joint ventures in India.
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 December 5, 2017, the Company owned 239 hotels, with more than 30,300 guestrooms, diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets across 34 states. The Company’s hotels include 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. The Company’s hotels are 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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