Financial Review: Apple Hospitality REIT (NYSE:APLE) and One Liberty Properties (NYSE:OLP)

One Liberty Properties (NYSE:OLP) and Apple Hospitality REIT (NYSE:APLE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Risk & Volatility

One Liberty Properties has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
One Liberty Properties	29.85%	9.26%	3.60%
Apple Hospitality REIT	12.71%	5.58%	3.64%

Dividends

One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 8.2%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 8.0%. One Liberty Properties pays out 139.5% 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 pays out 128.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

36.2% of One Liberty Properties shares are held by institutional investors. Comparatively, 89.7% of Apple Hospitality REIT shares are held by institutional investors. 25.4% of One Liberty Properties shares are held by company insiders. Comparatively, 7.1% of Apple Hospitality REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares One Liberty Properties 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
One Liberty Properties	$90.56 million	5.24	$30.42 million	$1.29	17.03
Apple Hospitality REIT	$1.43 billion	1.99	$214.06 million	$0.75	16.02

Apple Hospitality REIT has higher revenue and earnings than One Liberty Properties. Apple Hospitality REIT is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for One Liberty Properties and Apple Hospitality REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
One Liberty Properties	0	0	0	0	0.00
Apple Hospitality REIT	0	2	2	0	2.50

Apple Hospitality REIT has a consensus target price of $15.00, suggesting a potential upside of 24.84%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Apple Hospitality REIT is more favorable than One Liberty Properties.

About One Liberty Properties

One Liberty Properties, Inc. is a real estate investment trust, which engages in acquisition, ownership, and management of the geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties, many of which are subject to long-term leases. The properties in the firm’s portfolio include net leases, long-term lease, and scheduled rent increases. The company was founded in December 1982 and is headquartered in Great Neck, NY.

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 223 hotels with more than 29,400 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 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.