Hersha Hospitality Trust (NYSE: HT) is one of 28 public companies in the “Hospitality REITs” industry, but how does it compare to its rivals? We will compare Hersha Hospitality Trust to related companies based on the strength of its dividends, profitability, valuation, institutional ownership, risk, analyst recommendations and earnings.

Risk & Volatility

Hersha Hospitality Trust has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust’s rivals have a beta of 1.01, meaning that their average stock price is 1% more volatile than the S&P 500.

Profitability

This table compares Hersha Hospitality Trust and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hersha Hospitality Trust 21.06% 13.52% 5.72%
Hersha Hospitality Trust Competitors 5.78% 1.56% 1.59%

Valuation and Earnings

This table compares Hersha Hospitality Trust and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hersha Hospitality Trust $471.75 million $138.69 million 8.03
Hersha Hospitality Trust Competitors $1.09 billion $355.81 million -19.30

Hersha Hospitality Trust’s rivals have higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 6.5%. Hersha Hospitality Trust pays out 52.1% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.4% and pay out 134.4% of their earnings in the form of a dividend. Hersha Hospitality Trust has increased its dividend for 3 consecutive years. Hersha Hospitality Trust is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

98.0% of Hersha Hospitality Trust shares are owned by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are owned by institutional investors. 8.1% of Hersha Hospitality Trust shares are owned by insiders. Comparatively, 5.5% of shares of all “Hospitality REITs” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Hersha Hospitality Trust and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hersha Hospitality Trust 1 5 4 0 2.30
Hersha Hospitality Trust Competitors 116 776 869 21 2.45

Hersha Hospitality Trust presently has a consensus price target of $19.60, suggesting a potential upside of 13.49%. As a group, “Hospitality REITs” companies have a potential upside of 7.85%. Given Hersha Hospitality Trust’s higher probable upside, equities research analysts clearly believe Hersha Hospitality Trust is more favorable than its rivals.

Summary

Hersha Hospitality Trust beats its rivals on 10 of the 15 factors compared.

Hersha Hospitality Trust Company Profile

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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