RLJ Lodging Trust (NYSE:RLJ) vs. Alexander & Baldwin (NYSE:ALEX) Financial Comparison

Alexander & Baldwin (NYSE:ALEX) and RLJ Lodging Trust (NYSE:RLJ) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Alexander & Baldwin and RLJ Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alexander & Baldwin	33.62%	7.29%	4.45%
RLJ Lodging Trust	2.48%	1.78%	0.69%

Valuation and Earnings

This table compares Alexander & Baldwin and RLJ Lodging Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alexander & Baldwin	$236.67 million	6.34	$60.54 million	$1.01	20.43
RLJ Lodging Trust	$1.37 billion	0.82	$68.02 million	$0.05	148.80

RLJ Lodging Trust has higher revenue and earnings than Alexander & Baldwin. Alexander & Baldwin is trading at a lower price-to-earnings ratio than RLJ Lodging Trust, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Alexander & Baldwin has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Dividends

Alexander & Baldwin pays an annual dividend of $1.40 per share and has a dividend yield of 6.8%. RLJ Lodging Trust pays an annual dividend of $0.60 per share and has a dividend yield of 8.1%. Alexander & Baldwin pays out 138.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLJ Lodging Trust pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexander & Baldwin has raised its dividend for 4 consecutive years and RLJ Lodging Trust has raised its dividend for 3 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Alexander & Baldwin and RLJ Lodging Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alexander & Baldwin	0	5	0	0	2.00
RLJ Lodging Trust	3	3	2	1	2.11

Alexander & Baldwin presently has a consensus price target of $20.95, indicating a potential upside of 1.55%. RLJ Lodging Trust has a consensus price target of $9.08, indicating a potential upside of 22.09%. Given RLJ Lodging Trust’s stronger consensus rating and higher probable upside, analysts clearly believe RLJ Lodging Trust is more favorable than Alexander & Baldwin.

Institutional & Insider Ownership

91.3% of Alexander & Baldwin shares are owned by institutional investors. Comparatively, 92.4% of RLJ Lodging Trust shares are owned by institutional investors. 0.7% of Alexander & Baldwin shares are owned by company insiders. Comparatively, 2.6% of RLJ Lodging Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

RLJ Lodging Trust beats Alexander & Baldwin on 11 of the 18 factors compared between the two stocks.

About Alexander & Baldwin

Alexander & Baldwin, Inc. engages in the real estate business. It operates through the Commercial Real Estate and Land Operations segments. The Commercial Real Estate segment includes investments and acquisitions, construction and development, and in-house leasing and property management. The Land Operations segment consists of legacy landholdings, assets, and liabilities subject to the company’s simplification and monetization effort. The company was founded by Samuel Thomas Alexander and Henry Perrine Baldwin in 1870 and is headquartered in Honolulu, HI.

About RLJ Lodging Trust

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.