Ashford Hospitality Trust (NYSE:AHT) and Rexford Industrial Realty (NYSE:REXR) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Ashford Hospitality Trust pays an annual dividend of $0.24 per share and has a dividend yield of 8.1%. Rexford Industrial Realty pays an annual dividend of $0.74 per share and has a dividend yield of 1.6%. Ashford Hospitality Trust pays out 19.0% of its earnings in the form of a dividend. Rexford Industrial Realty pays out 66.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Ashford Hospitality Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of recent ratings and target prices for Ashford Hospitality Trust and Rexford Industrial Realty, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ashford Hospitality Trust||0||2||2||0||2.50|
|Rexford Industrial Realty||0||3||1||0||2.25|
Ashford Hospitality Trust presently has a consensus price target of $5.50, indicating a potential upside of 86.44%. Rexford Industrial Realty has a consensus price target of $43.33, indicating a potential downside of 8.31%. Given Ashford Hospitality Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ashford Hospitality Trust is more favorable than Rexford Industrial Realty.
Volatility and Risk
Ashford Hospitality Trust has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Rexford Industrial Realty has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This table compares Ashford Hospitality Trust and Rexford Industrial Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ashford Hospitality Trust||-9.28%||-32.31%||-2.85%|
|Rexford Industrial Realty||21.02%||2.63%||1.69%|
Valuation & Earnings
This table compares Ashford Hospitality Trust and Rexford Industrial Realty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ashford Hospitality Trust||$1.43 billion||0.21||-$126.97 million||$1.26||2.34|
|Rexford Industrial Realty||$212.49 million||24.41||$46.21 million||$1.12||42.20|
Rexford Industrial Realty has lower revenue, but higher earnings than Ashford Hospitality Trust. Ashford Hospitality Trust is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
64.7% of Ashford Hospitality Trust shares are held by institutional investors. Comparatively, 99.1% of Rexford Industrial Realty shares are held by institutional investors. 11.6% of Ashford Hospitality Trust shares are held by company insiders. Comparatively, 1.7% of Rexford Industrial Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Ashford Hospitality Trust beats Rexford Industrial Realty on 9 of the 16 factors compared between the two stocks.
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.
Rexford Industrial Realty Company Profile
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.
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