Hospitality Properties Trust (NASDAQ:SVC) & Northstar Realty Europe (NASDAQ:NRE) Head-To-Head Contrast

Hospitality Properties Trust (NASDAQ:SVC) and Northstar Realty Europe (NYSE:NRE) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hospitality Properties Trust and Northstar Realty Europe, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hospitality Properties Trust 0 1 1 0 2.50
Northstar Realty Europe 0 2 0 0 2.00

Hospitality Properties Trust currently has a consensus target price of $28.50, suggesting a potential upside of 20.71%. Northstar Realty Europe has a consensus target price of $17.00, suggesting a potential downside of 0.12%. Given Hospitality Properties Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Hospitality Properties Trust is more favorable than Northstar Realty Europe.

Profitability

This table compares Hospitality Properties Trust and Northstar Realty Europe’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hospitality Properties Trust -12.50% -10.78% -3.67%
Northstar Realty Europe 190.52% 5.70% 2.52%

Risk and Volatility

Hospitality Properties Trust has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Northstar Realty Europe has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.

Dividends

Hospitality Properties Trust pays an annual dividend of $2.16 per share and has a dividend yield of 9.1%. Northstar Realty Europe pays an annual dividend of $0.60 per share and has a dividend yield of 3.5%. Hospitality Properties Trust pays out 58.5% of its earnings in the form of a dividend.

Insider and Institutional Ownership

73.2% of Hospitality Properties Trust shares are held by institutional investors. Comparatively, 67.4% of Northstar Realty Europe shares are held by institutional investors. 1.3% of Hospitality Properties Trust shares are held by company insiders. Comparatively, 1.5% of Northstar Realty Europe shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Hospitality Properties Trust and Northstar Realty Europe’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hospitality Properties Trust $2.29 billion 1.69 $185.73 million $3.69 6.40
Northstar Realty Europe $121.97 million 7.02 $207.41 million N/A N/A

Northstar Realty Europe has lower revenue, but higher earnings than Hospitality Properties Trust.

Summary

Northstar Realty Europe beats Hospitality Properties Trust on 8 of the 14 factors compared between the two stocks.

About Hospitality Properties Trust

Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, the District of Columbia, Puerto Rico and Canada. HPT's properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.

About Northstar Realty Europe

NorthStar Realty Europe Corp. is a European focused commercial real estate company with predominately prime office properties within key cities in Germany, the United Kingdom and France, organized as a REIT and managed by an affiliate of Colony Capital, Inc. (NYSE: CLNY), a leading global equity REIT with an embedded investment management platform.

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