Apple Hospitality REIT (NYSE:APLE) & Alexander’s (ALX) Critical Comparison

Alexander’s (NYSE:ALX) and Apple Hospitality REIT (NYSE:APLE) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Dividends

Alexander’s pays an annual dividend of $18.00 per share and has a dividend yield of 4.8%. Apple Hospitality REIT pays an annual dividend of $1.20 per share and has a dividend yield of 7.4%. Apple Hospitality REIT pays out 69.8% of its earnings in the form of a dividend. Alexander’s has raised its dividend for 9 consecutive years.

Insider and Institutional Ownership

33.9% of Alexander’s shares are held by institutional investors. Comparatively, 57.3% of Apple Hospitality REIT shares are held by institutional investors. 26.0% of Alexander’s shares are held by insiders. Comparatively, 6.5% of Apple Hospitality REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Alexander’s and Apple Hospitality REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexander’s 14.11% 20.59% 4.04%
Apple Hospitality REIT 16.22% 5.86% 4.14%

Valuation and Earnings

This table compares Alexander’s and Apple Hospitality REIT’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexander’s $232.82 million 8.22 $32.84 million N/A N/A
Apple Hospitality REIT $1.27 billion 2.87 $206.09 million $1.72 9.47

Apple Hospitality REIT has higher revenue and earnings than Alexander’s.

Analyst Ratings

This is a summary of recent recommendations and price targets for Alexander’s and Apple Hospitality REIT, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexander’s 0 0 0 0 N/A
Apple Hospitality REIT 0 1 1 0 2.50

Apple Hospitality REIT has a consensus price target of $19.00, suggesting a potential upside of 16.64%. Given Apple Hospitality REIT’s higher possible upside, analysts plainly believe Apple Hospitality REIT is more favorable than Alexander’s.

Risk & Volatility

Alexander’s has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Summary

Apple Hospitality REIT beats Alexander’s on 9 of the 15 factors compared between the two stocks.

Alexander’s Company Profile

Alexander's, Inc. is a real estate investment trust which has seven properties in the greater New York City metropolitan area.

Apple Hospitality REIT Company Profile

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, select-service hotels in the United States. Apple Hospitality's portfolio consists of 241 hotels with more than 30,700 guest rooms located in 88 markets throughout 34 states. Franchised with industry-leading brands, the Company's portfolio comprises 115 Marriott-branded hotels and 126 Hilton-branded hotels.

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