Apple Hospitality REIT (NYSE:APLE – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) 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.
This table compares Apple Hospitality REIT and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Apple Hospitality REIT||11.95%||5.02%||3.34%|
|Diversified Healthcare Trust||-18.50%||-10.08%||-4.50%|
Earnings and Valuation
This table compares Apple Hospitality REIT and Diversified Healthcare Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Apple Hospitality REIT||$1.33 billion||2.84||$144.80 million||$0.70||23.55|
|Diversified Healthcare Trust||$1.28 billion||0.40||-$15.77 million||($1.07)||-1.98|
Institutional and Insider Ownership
80.5% of Apple Hospitality REIT shares are owned by institutional investors. Comparatively, 95.4% of Diversified Healthcare Trust shares are owned by institutional investors. 7.0% of Apple Hospitality REIT shares are owned by company insiders. Comparatively, 1.4% of Diversified Healthcare 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.
Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.9%. Apple Hospitality REIT pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Diversified Healthcare Trust pays out -3.7% of its earnings in the form of a dividend. Apple Hospitality REIT has increased its dividend for 1 consecutive years. Apple Hospitality REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and recommmendations for Apple Hospitality REIT and Diversified Healthcare Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Apple Hospitality REIT||0||2||3||0||2.60|
|Diversified Healthcare Trust||0||0||1||0||3.00|
Apple Hospitality REIT presently has a consensus target price of $18.20, suggesting a potential upside of 10.40%. Diversified Healthcare Trust has a consensus target price of $4.50, suggesting a potential upside of 112.26%. Given Diversified Healthcare Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Diversified Healthcare Trust is more favorable than Apple Hospitality REIT.
Volatility & Risk
Apple Hospitality REIT has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.
Apple Hospitality REIT beats Diversified Healthcare Trust on 11 of the 16 factors compared between the two stocks.
About Apple Hospitality REIT
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 220 hotels with more than 28,900 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 97 Marriott-branded hotels, 119 Hilton-branded hotels and four Hyatt-branded hotels.
About Diversified Healthcare Trust
DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2023, DHC's approximately $7.2 billion portfolio included 376 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
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