Reviewing Hersha Hospitality Trust (HT)’s and Its Rivals results

We are comparing Hersha Hospitality Trust (NYSE:HT) and its rivals on their institutional ownership, profitability, risk, analyst recommendations, dividends, earnings and valuation. They are REIT – Hotel/Motel companies, competing one another.

Insider and Institutional Ownership

97.9% of Hersha Hospitality Trust’s shares are held by institutional investors. Comparatively, 76.31% of all REIT – Hotel/Motel’s companies shares are held by institutional investors. 2% of Hersha Hospitality Trust shares are held by company insiders. Comparatively, 5.39% of all REIT – Hotel/Motel companies shares are held by company insiders.

Profitability

Table 1 has Hersha Hospitality Trust and its peers’ return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
Hersha Hospitality Trust 259,319,631.47% -2.70% -1.10%
Industry Average 11.95% 12.42% 4.25%

Earnings & Valuation

In next table we are comparing Hersha Hospitality Trust and its peers’ valuation, gross revenue and net income.

Net Income Gross Revenue Price/Earnings Ratio
Hersha Hospitality Trust 36.59M 14 0.00
Industry Average 117.90M 986.93M 24.58

Analyst Ratings

Table 3 shows breakdown of recent ratings for Hersha Hospitality Trust and its peers.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Hersha Hospitality Trust 2 2 0 2.50
Industry Average 1.43 2.00 1.75 2.39

Hersha Hospitality Trust currently has an average price target of $14.25, suggesting a potential upside of 3.26%. As a group, REIT – Hotel/Motel companies have a potential upside of 6.40%. Given Hersha Hospitality Trust’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Hersha Hospitality Trust is more favorable than its peers.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of Hersha Hospitality Trust and its peers.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Hersha Hospitality Trust -0.71% -2.56% -2.76% -18.38% -25.74% -19.73%
Industry Average 1.41% 1.34% 4.06% 5.16% 8.22% 16.74%

For the past year Hersha Hospitality Trust has -19.73% weaker performance while Hersha Hospitality Trust’s peers have 16.74% stronger performance.

Risk and Volatility

Hersha Hospitality Trust is 25.00% more volatile than Standard and Poor’s 500 because the stock has a beta of 1.25. Competitively, Hersha Hospitality Trust’s rivals are 9.39% more volatile than Standard and Poor’s 500, because of the 1.09 beta.

Dividends

Hersha Hospitality Trust does not pay a dividend.

Summary

On 3 of the 4 factors Hersha Hospitality Trust’s competitors beat Hersha Hospitality Trust.

Hersha Hospitality Trust, a real estate investment trust, engages in the ownership and operation of mid scale limited service hotels in the Eastern United States. As of June 30, 2005, it owned interests in 35 hotels, including 4 hotels owned through joint ventures in Pennsylvania, New York, New Jersey, Maryland, Georgia, Connecticut, and Massachusetts. The company has elected to be taxed as a REIT under the Internal Revenue Code. As a REIT, Hersha would not be subject to income tax to the extent it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1998 and is headquartered in New Cumberland, Pennsylvania.