LaSalle Hotel Properties (LHO) & FelCor Lodging Trust (FCH) Critical Review
LaSalle Hotel Properties (NYSE: LHO) and FelCor Lodging Trust (NYSE:FCH) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.
This table compares LaSalle Hotel Properties and FelCor Lodging 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%|
|FelCor Lodging Trust||-5.15%||-25.32%||-1.92%|
LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. FelCor Lodging Trust pays out -49.0% 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 increased its dividend for 2 consecutive years and FelCor Lodging Trust has increased its dividend for 5 consecutive years.
This is a summary of recent ratings and price targets for LaSalle Hotel Properties and FelCor Lodging Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LaSalle Hotel Properties||2||10||1||0||1.92|
|FelCor Lodging Trust||0||2||1||0||2.33|
LaSalle Hotel Properties currently has a consensus price target of $28.46, indicating a potential upside of 1.60%. FelCor Lodging Trust has a consensus price target of $7.25, indicating a potential upside of 2.84%. Given FelCor Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe FelCor Lodging Trust is more favorable than LaSalle Hotel Properties.
Risk & Volatility
LaSalle Hotel Properties has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Earnings and Valuation
This table compares LaSalle Hotel Properties and FelCor Lodging Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LaSalle Hotel Properties||$1.18 billion||2.69||$371.93 million||$2.69||10.41|
|FelCor Lodging Trust||$828.93 million||1.18||$207.52 million||($0.49)||-14.39|
LaSalle Hotel Properties has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging 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.
Institutional & Insider Ownership
78.8% of FelCor Lodging Trust shares are owned by institutional investors. 0.4% of LaSalle Hotel Properties shares are owned by insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
LaSalle Hotel Properties beats FelCor Lodging 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 FelCor Lodging Trust
FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.
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