Analyzing Hospitality Properties Trust (HPT) & Its Peers

Hospitality Properties Trust (NASDAQ: HPT) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it compare to its peers? We will compare Hospitality Properties Trust to similar companies based on the strength of its analyst recommendations, dividends, profitability, risk, institutional ownership, earnings and valuation.

Profitability

This table compares Hospitality Properties Trust and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospitality Properties Trust 10.22% 7.53% 3.16%
Hospitality Properties Trust Competitors 5.91% 1.62% 1.63%

Analyst Ratings

This is a summary of recent recommendations for Hospitality Properties Trust and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospitality Properties Trust 0 3 4 0 2.57
Hospitality Properties Trust Competitors 111 747 860 21 2.45

Hospitality Properties Trust currently has a consensus price target of $32.33, indicating a potential upside of 11.30%. As a group, “Hospitality REITs” companies have a potential upside of 4.42%. Given Hospitality Properties Trust’s stronger consensus rating and higher probable upside, equities analysts clearly believe Hospitality Properties Trust is more favorable than its peers.

Earnings & Valuation

This table compares Hospitality Properties Trust and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Hospitality Properties Trust $2.08 billion $749.37 million 24.62
Hospitality Properties Trust Competitors $1.09 billion $355.81 million -15.42

Hospitality Properties Trust has higher revenue and earnings than its peers. Hospitality Properties Trust is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.2%. Hospitality Properties Trust pays out 176.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.2% and pay out 132.6% of their earnings in the form of a dividend.

Institutional and Insider Ownership

76.3% of Hospitality Properties Trust shares are owned by institutional investors. Comparatively, 78.8% of shares of all “Hospitality REITs” companies are owned by institutional investors. 1.7% of Hospitality Properties Trust shares are owned by company insiders. Comparatively, 5.2% of shares of all “Hospitality REITs” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Hospitality Properties Trust has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust’s peers have a beta of 1.01, indicating that their average stock price is 1% more volatile than the S&P 500.

Summary

Hospitality Properties Trust beats its peers on 11 of the 15 factors compared.

Hospitality Properties Trust Company Profile

Hospitality Properties Trust is a real estate investment trust. The Company’s segments include hotel investments, travel center investments and corporate. As of December 31, 2016, the Company owned 306 hotels with 46,583 rooms or suites, and 198 travel centers. As of December 31, 2016, the Company’s properties were located in 45 states in the United States, Canada and Puerto Rico. As of December 31, 2016, the Company’s hotels were operated as Courtyard by Marriott, Royal Sonesta, Sonesta Hotels & Resorts, Candlewood Suites, Residence Inn by Marriott, Sonesta ES Suites, Crowne Plaza Hotels & Resorts, Staybridge Suites, Hyatt Place, Wyndham Grand, Wyndham Hotels & Resorts, InterContinental Hotels & Resorts, Marriott Hotels and Resorts, the Clift Hotel, Radisson Hotels & Resorts, Kimpton Hotels & Restaurants, TownePlace Suites by Marriott, Hawthorn Suites, Country Inns & Suites by Carlson, Holiday Inn Hotels & Resorts, SpringHill Suites by Marriott, and Park Plaza Hotels & Resorts.

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