Comparing Hospitality Properties Trust (HPT) & Vornado Realty Trust (VNO)

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Hospitality Properties Trust (NYSE: VNO) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Dividends

Hospitality Properties Trust pays an annual dividend of $2.12 per share and has a dividend yield of 7.3%. Vornado Realty Trust pays an annual dividend of $2.52 per share and has a dividend yield of 3.3%. Hospitality Properties Trust pays out 59.4% of its earnings in the form of a dividend. Vornado Realty Trust pays out 67.6% 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. Hospitality Properties Trust has increased its dividend for 6 consecutive years. Hospitality Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Hospitality Properties Trust and Vornado Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hospitality Properties Trust $2.17 billion 2.20 $215.14 million $3.57 8.14
Vornado Realty Trust $2.08 billion 6.98 $227.41 million $3.73 20.50

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Hospitality Properties Trust and Vornado Realty Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospitality Properties Trust 0 3 2 0 2.40
Vornado Realty Trust 0 3 6 0 2.67

Hospitality Properties Trust presently has a consensus target price of $30.00, suggesting a potential upside of 3.20%. Vornado Realty Trust has a consensus target price of $79.50, suggesting a potential upside of 3.98%. Given Vornado Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Vornado Realty Trust is more favorable than Hospitality Properties Trust.

Institutional and Insider Ownership

73.7% of Hospitality Properties Trust shares are owned by institutional investors. Comparatively, 79.1% of Vornado Realty Trust shares are owned by institutional investors. 1.3% of Hospitality Properties Trust shares are owned by company insiders. Comparatively, 10.0% of Vornado Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Hospitality Properties Trust and Vornado Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospitality Properties Trust 13.08% 8.19% 3.16%
Vornado Realty Trust 6.91% 5.16% 1.26%

Volatility & Risk

Hospitality Properties Trust has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500.

Summary

Vornado Realty Trust beats Hospitality Properties Trust on 10 of the 17 factors compared between the two stocks.

Hospitality Properties Trust Company Profile

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, Puerto Rico and Canada. HPT's properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

Vornado Realty Trust Company Profile

Vornado's portfolio is concentrated in the nation's key market New York City along with the premier asset in both Chicago and San Francisco. Vornado is also the real estate industry leader in sustainability policy. The company owns and manages over 23 million square feet of LEED certified buildings and received the Energy Star Partner of the Year Award, Sustained Excellence 2017. In 2012, Vornado commemorated 50 years on the NYSE.

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