City Office REIT (NYSE: AHT) and Ashford Hospitality Trust (NYSE:AHT) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Valuation & Earnings
This table compares City Office REIT and Ashford Hospitality Trust’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|City Office REIT||$106.49 million||4.34||$5.75 million||$0.97||13.20|
|Ashford Hospitality Trust||$1.44 billion||0.44||-$67.00 million||$1.37||4.71|
Volatility & Risk
City Office REIT has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Ashford Hospitality Trust has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500.
This table compares City Office REIT and Ashford Hospitality Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|City Office REIT||36.89%||17.42%||4.90%|
|Ashford Hospitality Trust||-6.76%||-16.70%||-2.15%|
This is a breakdown of current recommendations and price targets for City Office REIT and Ashford Hospitality Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|City Office REIT||0||1||4||0||2.80|
|Ashford Hospitality Trust||0||1||3||0||2.75|
City Office REIT currently has a consensus target price of $14.00, indicating a potential upside of 9.37%. Ashford Hospitality Trust has a consensus target price of $8.00, indicating a potential upside of 24.03%. Given Ashford Hospitality Trust’s higher possible upside, analysts plainly believe Ashford Hospitality Trust is more favorable than City Office REIT.
Insider & Institutional Ownership
65.1% of City Office REIT shares are owned by institutional investors. Comparatively, 72.7% of Ashford Hospitality Trust shares are owned by institutional investors. 2.7% of City Office REIT shares are owned by company insiders. Comparatively, 13.3% of Ashford Hospitality Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
City Office REIT pays an annual dividend of $0.94 per share and has a dividend yield of 7.3%. Ashford Hospitality Trust pays an annual dividend of $0.48 per share and has a dividend yield of 7.4%. City Office REIT pays out 96.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ashford Hospitality Trust pays out 35.0% of its earnings in the form of a dividend. Ashford Hospitality Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
City Office REIT Company Profile
City Office REIT, Inc. (NYSE: CIO) invests in high-quality office properties in mid-sized metropolitan areas with strong economic fundamentals, primarily in the Southern and Western United States. At March 31, 2018, CIO owned office complexes comprising 4.6 million square feet of net rentable area (?NRA?).
Ashford Hospitality Trust Company Profile
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.
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