Financial Comparison: BRT Apartments (NYSE:BRT) and Braemar Hotels & Resorts (NYSE:BHR)

BRT Apartments (NYSE:BRT) and Braemar Hotels & Resorts (NYSE:BHR) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Insider & Institutional Ownership

29.1% of BRT Apartments shares are held by institutional investors. Comparatively, 64.8% of Braemar Hotels & Resorts shares are held by institutional investors. 42.0% of BRT Apartments shares are held by company insiders. Comparatively, 1.8% of Braemar Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

BRT Apartments has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Braemar Hotels & Resorts has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500.

Earnings and Valuation

This table compares BRT Apartments and Braemar Hotels & Resorts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRT Apartments	$95.95 million	3.12	$3.87 million	($0.48)	-32.96
Braemar Hotels & Resorts	$725.15 million	0.20	-$27.02 million	($0.86)	-2.47

BRT Apartments has higher earnings, but lower revenue than Braemar Hotels & Resorts. BRT Apartments is trading at a lower price-to-earnings ratio than Braemar Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Dividends

BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 6.3%. Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 9.4%. BRT Apartments pays out -208.3% of its earnings in the form of a dividend. Braemar Hotels & Resorts pays out -23.3% 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.

Analyst Ratings

This is a summary of current recommendations and price targets for BRT Apartments and Braemar Hotels & Resorts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRT Apartments	0	1	2	0	2.67
Braemar Hotels & Resorts	0	0	0	0	0.00

BRT Apartments currently has a consensus target price of $22.50, suggesting a potential upside of 42.23%. Given BRT Apartments’ stronger consensus rating and higher possible upside, research analysts plainly believe BRT Apartments is more favorable than Braemar Hotels & Resorts.

Profitability

This table compares BRT Apartments and Braemar Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRT Apartments	-9.94%	-4.33%	-1.34%
Braemar Hotels & Resorts	-0.30%	-0.78%	-0.10%

Summary

BRT Apartments beats Braemar Hotels & Resorts on 9 of the 16 factors compared between the two stocks.

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.

About Braemar Hotels & Resorts

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).