Reviewing Hersha Hospitality Trust (HT) and Its Competitors

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

Earnings & Valuation

This table compares Hersha Hospitality Trust and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Hersha Hospitality Trust $466.63 million $116.98 million 8.21
Hersha Hospitality Trust Competitors $1.19 billion $144.77 million 114.81

Hersha Hospitality Trust’s peers have higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable 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 6.3%. 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 5.3% and pay out 83.9% of their earnings in the form of a dividend. Hersha Hospitality Trust has raised its dividend for 3 consecutive years. Hersha Hospitality Trust is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

This table compares Hersha Hospitality Trust and its peers’ 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 10.72% 5.13% 3.11%

Analyst Ratings

This is a summary of current recommendations for Hersha Hospitality Trust and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hersha Hospitality Trust 1 5 5 0 2.36
Hersha Hospitality Trust Competitors 124 854 936 22 2.44

Hersha Hospitality Trust presently has a consensus price target of $19.60, indicating a potential upside of 11.05%. As a group, “Hospitality REITs” companies have a potential upside of 6.49%. Given Hersha Hospitality Trust’s higher probable upside, research analysts plainly believe Hersha Hospitality Trust is more favorable than its peers.

Institutional and Insider Ownership

98.4% of Hersha Hospitality Trust shares are held by institutional investors. Comparatively, 77.3% of shares of all “Hospitality REITs” companies are held by institutional investors. 8.1% of Hersha Hospitality Trust shares are held by insiders. Comparatively, 5.5% of shares of all “Hospitality REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Hersha Hospitality Trust has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust’s peers have a beta of 1.07, indicating that their average stock price is 7% more volatile than the S&P 500.

Summary

Hersha Hospitality Trust beats its peers on 9 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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