Hersha Hospitality Trust (NYSE: MAA) and Mid-America Apartment Communities (NYSE:MAA) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
This table compares Hersha Hospitality Trust and Mid-America Apartment Communities’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hersha Hospitality Trust||-2.74%||-0.58%||-0.25%|
|Mid-America Apartment Communities||22.36%||5.28%||3.01%|
Valuation and Earnings
This table compares Hersha Hospitality Trust and Mid-America Apartment Communities’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hersha Hospitality Trust||$498.24 million||1.85||$99.86 million||$2.16||10.82|
|Mid-America Apartment Communities||$1.53 billion||7.70||$328.37 million||$5.94||17.41|
Mid-America Apartment Communities has higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than Mid-America Apartment Communities, indicating that it is currently the more affordable of the two stocks.
Hersha Hospitality Trust pays an annual dividend of $1.12 per share and has a dividend yield of 4.8%. Mid-America Apartment Communities pays an annual dividend of $3.69 per share and has a dividend yield of 3.6%. Hersha Hospitality Trust pays out 51.9% of its earnings in the form of a dividend. Mid-America Apartment Communities pays out 62.1% 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. Mid-America Apartment Communities has raised its dividend for 7 consecutive years. Hersha Hospitality Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a summary of current recommendations and price targets for Hersha Hospitality Trust and Mid-America Apartment Communities, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hersha Hospitality Trust||1||6||2||0||2.11|
|Mid-America Apartment Communities||0||8||6||0||2.43|
Hersha Hospitality Trust presently has a consensus target price of $20.50, suggesting a potential downside of 12.28%. Mid-America Apartment Communities has a consensus target price of $104.55, suggesting a potential upside of 1.08%. Given Mid-America Apartment Communities’ stronger consensus rating and higher probable upside, analysts clearly believe Mid-America Apartment Communities is more favorable than Hersha Hospitality Trust.
Volatility and Risk
Hersha Hospitality Trust has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Mid-America Apartment Communities has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.
Insider & Institutional Ownership
92.4% of Hersha Hospitality Trust shares are owned by institutional investors. Comparatively, 92.7% of Mid-America Apartment Communities shares are owned by institutional investors. 10.3% of Hersha Hospitality Trust shares are owned by insiders. Comparatively, 1.3% of Mid-America Apartment Communities shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Mid-America Apartment Communities beats Hersha Hospitality Trust on 13 of the 17 factors compared between the two stocks.
Hersha Hospitality Trust Company Profile
Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale hotels in urban gateway markets and coastal destinations. The Company's 49 hotels totaling 7,653 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company's common shares are traded on The New York Stock Exchange under the ticker ?HT.?
Mid-America Apartment Communities Company Profile
MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities throughout the United States. As of June 30, 2018, MAA had ownership interest in 101,362 apartment units, including communities currently in development, across 17 states and the District of Columbia. For further details, please visit the MAA website at www.maac.com or contact Investor Relations at [email protected], or via mail at MAA, 6815 Poplar Ave., Suite 500, Germantown, TN 38138, Attn: Investor Relations.
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