Analyzing Omega Healthcare Investors (NYSE:OHI) & Ashford Hospitality Trust (NYSE:AHT)

Omega Healthcare Investors (NYSE:OHI) and Ashford Hospitality Trust (NYSE:AHT) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares Omega Healthcare Investors and Ashford Hospitality Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	41.29%	9.98%	4.71%
Ashford Hospitality Trust	-13.25%	N/A	-4.72%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Omega Healthcare Investors and Ashford Hospitality Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	0	5	4	0	2.44
Ashford Hospitality Trust	0	0	0	0	0.00

Omega Healthcare Investors currently has a consensus price target of $42.25, suggesting a potential upside of 11.75%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, research analysts clearly believe Omega Healthcare Investors is more favorable than Ashford Hospitality Trust.

Risk & Volatility

Omega Healthcare Investors has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Ashford Hospitality Trust has a beta of 2.24, suggesting that its share price is 124% more volatile than the S&P 500.

Earnings and Valuation

This table compares Omega Healthcare Investors and Ashford Hospitality Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.05 billion	10.41	$406.33 million	$1.61	23.48
Ashford Hospitality Trust	$1.17 billion	0.03	-$60.30 million	($38.63)	-0.18

Omega Healthcare Investors has higher earnings, but lower revenue than Ashford Hospitality Trust. Ashford Hospitality Trust is trading at a lower price-to-earnings ratio than Omega Healthcare Investors, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

65.3% of Omega Healthcare Investors shares are owned by institutional investors. Comparatively, 41.0% of Ashford Hospitality Trust shares are owned by institutional investors. 1.5% of Omega Healthcare Investors shares are owned by insiders. Comparatively, 2.2% of Ashford Hospitality Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Omega Healthcare Investors beats Ashford Hospitality Trust on 11 of the 14 factors compared between the two stocks.

About Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.

About Ashford Hospitality Trust

Ashford Hospitality Trust, Inc., together with its subsidiaries (Ashford Trust), is a real estate investment trust (REIT). While our portfolio currently consists of upscale hotels and upper upscale full-service hotels, our investment strategy is predominantly focused on investing in upper upscale full-service hotels in the United States that have revenue per available room (RevPAR) generally less than twice the U.S. national average, and in all methods including direct real estate, equity, and debt. We currently anticipate future investments will predominantly be in upper upscale hotels. We own our lodging investments and conduct our business through Ashford Hospitality Limited Partnership (Ashford Trust OP), our operating partnership. Ashford OP General Partner LLC, a wholly owned subsidiary of Ashford Trust, serves as the sole general partner of our operating partnership.