Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) and Apple Hospitality REIT (NYSE:APLE – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Valuation & Earnings
This table compares Diversified Healthcare Trust and Apple Hospitality REIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Diversified Healthcare Trust||$1.28 billion||0.39||-$15.77 million||($1.07)||-1.94|
|Apple Hospitality REIT||$1.33 billion||2.85||$144.80 million||$0.70||23.64|
Apple Hospitality REIT has higher revenue and earnings than Diversified Healthcare Trust. Diversified Healthcare Trust is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 1.9%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.8%. Diversified Healthcare Trust pays out -3.7% of its earnings in the form of a dividend. Apple Hospitality REIT pays out 137.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apple Hospitality REIT has increased its dividend for 1 consecutive years. Apple Hospitality REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
95.4% of Diversified Healthcare Trust shares are held by institutional investors. Comparatively, 80.5% of Apple Hospitality REIT shares are held by institutional investors. 1.4% of Diversified Healthcare Trust shares are held by insiders. Comparatively, 7.0% of Apple Hospitality REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Diversified Healthcare Trust and Apple Hospitality REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diversified Healthcare Trust||-18.50%||-10.08%||-4.50%|
|Apple Hospitality REIT||11.95%||5.02%||3.34%|
This is a summary of recent ratings and price targets for Diversified Healthcare Trust and Apple Hospitality REIT, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diversified Healthcare Trust||0||0||1||0||3.00|
|Apple Hospitality REIT||0||2||3||0||2.60|
Diversified Healthcare Trust presently has a consensus price target of $4.50, suggesting a potential upside of 116.35%. Apple Hospitality REIT has a consensus price target of $18.20, suggesting a potential upside of 10.00%. Given Diversified Healthcare Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Diversified Healthcare Trust is more favorable than Apple Hospitality REIT.
Apple Hospitality REIT beats Diversified Healthcare Trust on 12 of the 17 factors compared between the two stocks.
About Diversified Healthcare Trust
DHC is a real estate investment trust focused on owning high-quality healthcare properties located throughout the United States. DHC seeks diversification across the health services spectrum by care delivery and practice type, by scientific research disciplines and by property type and location. As of September 30, 2023, DHC's approximately $7.2 billion portfolio included 376 properties in 36 states and Washington, D.C., occupied by approximately 500 tenants, and totaling approximately 9 million square feet of life science and medical office properties and more than 27,000 senior living units. DHC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with approximately $36 billion in assets under management as of September 30, 2023 and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. DHC is headquartered in Newton, MA.
About Apple Hospitality REIT
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, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 220 hotels with more than 28,900 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 97 Marriott-branded hotels, 119 Hilton-branded hotels and four Hyatt-branded hotels.
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