Ashford Hospitality Trust (NYSE: AHT) and Sotherly Hotels (NASDAQ:SOHO) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
This is a breakdown of current ratings and target prices for Ashford Hospitality Trust and Sotherly Hotels, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashford Hospitality Trust||0||2||4||0||2.67|
Ashford Hospitality Trust pays an annual dividend of $0.48 per share and has a dividend yield of 7.2%. Sotherly Hotels pays an annual dividend of $0.44 per share and has a dividend yield of 6.9%. Ashford Hospitality Trust pays out -35.0% of its earnings in the form of a dividend. Sotherly Hotels pays out -4,395.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Ashford Hospitality Trust has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.
Institutional and Insider Ownership
71.0% of Ashford Hospitality Trust shares are owned by institutional investors. Comparatively, 29.4% of Sotherly Hotels shares are owned by institutional investors. 18.2% of Ashford Hospitality Trust shares are owned by insiders. Comparatively, 13.8% of Sotherly Hotels shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Ashford Hospitality Trust and Sotherly Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashford Hospitality Trust||-5.61%||-10.79%||-1.68%|
Earnings & Valuation
This table compares Ashford Hospitality Trust and Sotherly Hotels’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ashford Hospitality Trust||$1.49 billion||0.44||-$46.28 million||($1.37)||-4.88|
|Sotherly Hotels||$152.85 million||0.58||$920,000.00||($0.01)||-635.36|
Sotherly Hotels has lower revenue, but higher earnings than Ashford Hospitality Trust. Sotherly Hotels is trading at a lower price-to-earnings ratio than Ashford Hospitality Trust, indicating that it is currently the more affordable of the two stocks.
Sotherly Hotels beats Ashford Hospitality Trust on 10 of the 16 factors compared between the two stocks.
About Ashford Hospitality Trust
Ashford Hospitality Trust, Inc. is an externally-advised real estate investment trust (REIT). The Company is focused on investing in the hospitality industry with a focus on full-service upscale and upper-upscale hotels in the United States. The Company owns its lodging investments and conducts its business through Ashford Hospitality Limited Partnership (Ashford Trust OP), its operating partnership. The Company’s portfolio consists of 121 properties with over 25000 rooms; 86 hotel condominium units at WorldQuest Resort in Orlando, Florida; a 96.6% ownership in Ashford Quantitative Alternatives (U.S.), LP (the AQUA U.S. Fund); a 29.7% ownership in Ashford Inc., and a 13.3% ownership in OpenKey.
About Sotherly Hotels
Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust. The Company is focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the southern United States. The Company operates through the hotel ownership segment. The Company conducts its operations through Sotherly Hotels LP, its Operating Partnership, of which the Company is the general partner. Its portfolio consists of approximately 10 full-service, mainly upscale and upper-upscale hotels located in over eight states with an aggregate of approximately 3,010 rooms and approximately 160,930 square feet of meeting space. All of these hotels are owned by subsidiaries of the Operating Partnership, approximately 10 operate under the Hilton, Crowne Plaza, DoubleTree and Sheraton brands, one is an independent hotel, and all are managed on a day to day basis by MHI Hotels Services, LLC, which does business as Chesapeake Hospitality.
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