Head-To-Head Survey: Braemar Hotels & Resorts (NYSE:BHR) and BRT Apartments (NYSE:BRT)

Braemar Hotels & Resorts (NYSE:BHR) and BRT Apartments (NYSE:BRT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Profitability

This table compares Braemar Hotels & Resorts and BRT Apartments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braemar Hotels & Resorts	-0.30%	-0.78%	-0.10%
BRT Apartments	-9.94%	-4.33%	-1.34%

Insider and Institutional Ownership

64.8% of Braemar Hotels & Resorts shares are held by institutional investors. Comparatively, 29.1% of BRT Apartments shares are held by institutional investors. 1.8% of Braemar Hotels & Resorts shares are held by company insiders. Comparatively, 42.0% of BRT Apartments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Braemar Hotels & Resorts and BRT Apartments”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braemar Hotels & Resorts	$725.15 million	0.19	-$27.02 million	($0.86)	-2.40
BRT Apartments	$95.95 million	3.02	$3.87 million	($0.48)	-31.90

BRT Apartments has lower revenue, but higher earnings than Braemar Hotels & Resorts. BRT Apartments is trading at a lower price-to-earnings ratio than Braemar Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Braemar Hotels & Resorts has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, BRT Apartments has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Dividends

Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 9.7%. BRT Apartments pays an annual dividend of $1.00 per share and has a dividend yield of 6.5%. Braemar Hotels & Resorts pays out -23.3% of its earnings in the form of a dividend. BRT Apartments pays out -208.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Braemar Hotels & Resorts and BRT Apartments, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braemar Hotels & Resorts	0	0	0	0	0.00
BRT Apartments	0	1	1	0	2.50

BRT Apartments has a consensus price target of $21.00, indicating a potential upside of 37.16%. Given BRT Apartments’ stronger consensus rating and higher probable upside, analysts clearly believe BRT Apartments is more favorable than Braemar Hotels & Resorts.

Summary

BRT Apartments beats Braemar Hotels & Resorts on 9 of the 16 factors compared between the two stocks.

About Braemar Hotels & Resorts

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

About BRT Apartments

BRT Apartments Corp. is a real estate investment trust. It engages in the ownership, operation, and holding interests in joint ventures that own and operate multi-family properties. The company was founded in June 1972 and is headquartered in Great Neck, NY.