Contrasting FelCor Lodging Trust (FCH) & Hospitality Properties Trust (HPT)

FelCor Lodging Trust (NYSE: FCH) and Hospitality Properties Trust (NASDAQ:HPT) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Institutional & Insider Ownership

78.8% of FelCor Lodging Trust shares are owned by institutional investors. Comparatively, 76.3% of Hospitality Properties Trust shares are owned by institutional investors. 3.3% of FelCor Lodging Trust shares are owned by insiders. Comparatively, 1.7% of Hospitality Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.1%. FelCor Lodging Trust pays out -49.0% of its earnings in the form of a dividend. 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. FelCor Lodging Trust has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for FelCor Lodging Trust and Hospitality Properties Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FelCor Lodging Trust 0 2 0 0 2.00
Hospitality Properties Trust 0 3 4 0 2.57

FelCor Lodging Trust presently has a consensus target price of $7.00, indicating a potential downside of 3.05%. Hospitality Properties Trust has a consensus target price of $32.33, indicating a potential upside of 10.13%. Given Hospitality Properties Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Hospitality Properties Trust is more favorable than FelCor Lodging Trust.

Risk & Volatility

FelCor Lodging Trust has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Earnings & Valuation

This table compares FelCor Lodging Trust and Hospitality Properties Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
FelCor Lodging Trust $828.93 million 1.21 $207.52 million ($0.49) -14.73
Hospitality Properties Trust $2.08 billion 2.32 $749.37 million $1.18 24.88

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

Profitability

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

Net Margins Return on Equity Return on Assets
FelCor Lodging Trust -0.66% N/A -0.35%
Hospitality Properties Trust 10.22% 7.53% 3.16%

Summary

Hospitality Properties Trust beats FelCor Lodging Trust on 11 of the 16 factors compared between the two stocks.

About FelCor Lodging Trust

FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.

About Hospitality Properties Trust

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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