Financial Review: Essex Property Trust (NYSE:ESS) and Hersha Hospitality Trust (NYSE:HT)

Essex Property Trust (NYSE:ESSGet Rating) and Hersha Hospitality Trust (NYSE:HTGet Rating) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Essex Property Trust and Hersha Hospitality Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essex Property Trust 2 7 7 0 2.31
Hersha Hospitality Trust 1 4 1 0 2.00

Essex Property Trust presently has a consensus price target of $361.71, indicating a potential upside of 1.61%. Hersha Hospitality Trust has a consensus price target of $10.39, indicating a potential upside of 7.58%. Given Hersha Hospitality Trust’s higher probable upside, analysts clearly believe Hersha Hospitality Trust is more favorable than Essex Property Trust.

Risk & Volatility

Essex Property Trust has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Hersha Hospitality Trust has a beta of 2.49, suggesting that its stock price is 149% more volatile than the S&P 500.

Earnings & Valuation

This table compares Essex Property Trust and Hersha Hospitality Trust’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Essex Property Trust $1.44 billion 16.08 $488.55 million $7.51 47.40
Hersha Hospitality Trust $295.99 million 1.28 -$40.17 million ($1.65) -5.85

Essex Property Trust has higher revenue and earnings than Hersha Hospitality Trust. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than Essex Property Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Essex Property Trust and Hersha Hospitality Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essex Property Trust 33.91% 6.60% 3.17%
Hersha Hospitality Trust -15.94% -6.57% -2.23%

Insider & Institutional Ownership

92.6% of Essex Property Trust shares are held by institutional investors. Comparatively, 63.7% of Hersha Hospitality Trust shares are held by institutional investors. 3.7% of Essex Property Trust shares are held by company insiders. Comparatively, 18.2% of Hersha Hospitality Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Essex Property Trust beats Hersha Hospitality Trust on 11 of the 14 factors compared between the two stocks.

About Essex Property Trust (Get Rating)

Essex Property Trust, Inc., an S&P 500 company, is a fully integrated real estate investment trust (REIT) that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development.

About Hersha Hospitality Trust (Get Rating)

Hersha Hospitality Trust (HT) is a self-advised real estate investment trust in the hospitality sector, which owns and operates high quality upscale and lifestyle hotels in urban gateway markets and resort destinations. The Company's 49 hotels totaling 7,774 rooms are located in New York, Washington, DC, Boston, Philadelphia, South Florida and select markets on the West Coast. The Company's common shares are traded on The New York Stock Exchange under the ticker ÂHT.Â

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