BRAEMAR HOTELS & RESORTS (NYSE:BHR) and Apple Hospitality REIT (NYSE:APLE) Head to Head Survey

BRAEMAR HOTELS & RESORTS (NYSE:BHR) and Apple Hospitality REIT (NYSE:APLE) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Dividends

BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 9.7%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.8%. BRAEMAR HOTELS & RESORTS pays out -20.8% of its earnings in the form of a dividend. Apple Hospitality REIT pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRAEMAR HOTELS & RESORTS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. Comparatively, 89.7% of Apple Hospitality REIT shares are owned by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by insiders. Comparatively, 6.9% of Apple Hospitality REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BRAEMAR HOTELS & RESORTS and Apple Hospitality REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67
Apple Hospitality REIT	0	7	2	1	2.40

BRAEMAR HOTELS & RESORTS currently has a consensus target price of $2.50, suggesting a potential upside of 21.07%. Apple Hospitality REIT has a consensus target price of $16.00, suggesting a potential downside of 3.24%. Given BRAEMAR HOTELS & RESORTS’s higher possible upside, analysts plainly believe BRAEMAR HOTELS & RESORTS is more favorable than Apple Hospitality REIT.

Profitability

This table compares BRAEMAR HOTELS & RESORTS and Apple Hospitality REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRAEMAR HOTELS & RESORTS	-2.24%	-8.68%	-0.80%
Apple Hospitality REIT	12.08%	5.43%	3.50%

Earnings and Valuation

This table compares BRAEMAR HOTELS & RESORTS and Apple Hospitality REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRAEMAR HOTELS & RESORTS	$697.18 million	0.20	-$22.32 million	($0.96)	-2.15
Apple Hospitality REIT	$1.41 billion	2.76	$175.36 million	$0.73	22.65

Apple Hospitality REIT has higher revenue and earnings than BRAEMAR HOTELS & RESORTS. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

BRAEMAR HOTELS & RESORTS has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Summary

Apple Hospitality REIT beats BRAEMAR HOTELS & RESORTS on 13 of the 17 factors compared between the two stocks.

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).

About Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 223 hotels with more than 29,400 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.