Head to Head Review: Sotherly Hotels (NASDAQ:SOHON) and Apple Hospitality REIT (NYSE:APLE)

Sotherly Hotels (NASDAQ:SOHONGet Free Report) and Apple Hospitality REIT (NYSE:APLEGet Free Report) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations for Sotherly Hotels and Apple Hospitality REIT, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sotherly Hotels 0 0 0 0 0.00
Apple Hospitality REIT 0 6 4 1 2.55

Apple Hospitality REIT has a consensus target price of $16.50, suggesting a potential upside of 5.03%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Apple Hospitality REIT is more favorable than Sotherly Hotels.

Institutional and Insider Ownership

89.7% of Apple Hospitality REIT shares are owned by institutional investors. 6.9% of Apple Hospitality REIT shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Sotherly Hotels pays an annual dividend of $2.06 per share and has a dividend yield of 4,120.0%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 6.1%. Apple Hospitality REIT pays out 129.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Sotherly Hotels and Apple Hospitality REIT”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sotherly Hotels $176.39 million N/A N/A N/A N/A
Apple Hospitality REIT $1.41 billion 2.63 $175.36 million $0.74 21.23

Apple Hospitality REIT has higher revenue and earnings than Sotherly Hotels.

Profitability

This table compares Sotherly Hotels and Apple Hospitality REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sotherly Hotels N/A N/A N/A
Apple Hospitality REIT 12.17% 5.56% 3.58%

Summary

Apple Hospitality REIT beats Sotherly Hotels on 10 of the 12 factors compared between the two stocks.

About Sotherly Hotels

(Get Free Report)

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.

About Apple Hospitality REIT

(Get Free Report)

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 223 hotels with more than 29,400 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.

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