Head to Head Survey: Hersha Hospitality Trust (HT) versus LaSalle Hotel Properties (NYSE:LHO)
LaSalle Hotel Properties (NYSE: LHO) and Hersha Hospitality Trust (NYSE:HT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, analyst recommendations, valuation, profitability, risk and institutional ownership.
This is a summary of recent ratings and recommmendations for LaSalle Hotel Properties and Hersha Hospitality Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LaSalle Hotel Properties||2||10||2||0||2.00|
|Hersha Hospitality Trust||1||4||2||0||2.14|
LaSalle Hotel Properties presently has a consensus target price of $28.46, suggesting a potential upside of 1.24%. Hersha Hospitality Trust has a consensus target price of $20.00, suggesting a potential upside of 10.80%. Given Hersha Hospitality Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Hersha Hospitality Trust is more favorable than LaSalle Hotel Properties.
Volatility and Risk
LaSalle Hotel Properties has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.
This table compares LaSalle Hotel Properties and Hersha Hospitality Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LaSalle Hotel Properties||27.85%||13.05%||8.48%|
|Hersha Hospitality Trust||22.77%||14.78%||6.13%|
Earnings & Valuation
This table compares LaSalle Hotel Properties and Hersha Hospitality Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LaSalle Hotel Properties||$1.18 billion||2.70||$371.93 million||$2.69||10.45|
|Hersha Hospitality Trust||$471.75 million||1.60||$138.69 million||$2.30||7.85|
LaSalle Hotel Properties has higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than LaSalle Hotel Properties, indicating that it is currently the more affordable of the two stocks.
LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.2%. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Hersha Hospitality Trust pays out 48.7% 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. LaSalle Hotel Properties has raised its dividend for 5 consecutive years and Hersha Hospitality Trust has raised its dividend for 3 consecutive years. LaSalle Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
96.6% of Hersha Hospitality Trust shares are owned by institutional investors. 0.4% of LaSalle Hotel Properties shares are owned by company insiders. Comparatively, 8.1% of Hersha Hospitality Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
LaSalle Hotel Properties beats Hersha Hospitality Trust on 9 of the 16 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 Hersha Hospitality Trust
Hersha Hospitality Trust is a self-advised real estate investment trust (REIT). The Company invests primarily in institutional grade hotels in urban gateway markets, including New York, Washington, District of Columbia, Boston, Philadelphia, South Florida and select markets on the West Coast. As of July 20, 2017, the Company’s hotels included 51 hotels totaling 7,804 rooms located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company’s property brands include Marriott International, Hilton Hotels, Hyatt Hotels, Intercontinental Hotel Group, Wyndham Hotels and Hersha’s Independent Hotel Collection.
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