Contrasting Apple Hospitality REIT (NYSE:APLE) and Exantas Capital (NYSE:XAN)


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Apple Hospitality REIT (NYSE:APLE) and Exantas Capital (NYSE:XAN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Institutional and Insider Ownership

64.2% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 41.8% of Exantas Capital shares are held by institutional investors. 6.5% of Apple Hospitality REIT shares are held by insiders. Comparatively, 5.7% of Exantas Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Apple Hospitality REIT and Exantas Capital’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Apple Hospitality REIT $1.27 billion 2.63 $171.92 million $1.63 9.12
Exantas Capital $61.15 million 8.16 $35.97 million $1.00 15.54

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

Profitability

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

Net Margins Return on Equity Return on Assets
Apple Hospitality REIT -12.73% -3.05% -1.91%
Exantas Capital -347.93% 8.10% 1.61%

Risk and Volatility

Apple Hospitality REIT has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Exantas Capital has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Apple Hospitality REIT and Exantas Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Apple Hospitality REIT 0 4 2 0 2.33
Exantas Capital 0 0 2 0 3.00

Apple Hospitality REIT presently has a consensus target price of $13.00, suggesting a potential downside of 12.58%. Exantas Capital has a consensus target price of $12.00, suggesting a potential downside of 22.78%. Given Apple Hospitality REIT’s higher probable upside, equities analysts clearly believe Apple Hospitality REIT is more favorable than Exantas Capital.

Summary

Apple Hospitality REIT beats Exantas Capital on 7 of the 13 factors compared between the two stocks.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (ÂREITÂ) 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 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. Concentrated with industry-leading brands, the Company's portfolio consists of 104 Marriott-branded hotels, 126 Hilton-branded hotels, three Hyatt-branded hotels and two independent hotels.

About Exantas Capital

Exantas Capital Corp., a real estate investment trust, primarily focuses on the origination, holding, and management of commercial real estate mortgage loans and other commercial real estate-related debt investments in the United States. It invests in commercial real estate-related assets, including floating and fixed rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine debt, preferred equity investments, commercial mortgage-backed securities, and commercial real estate equity investments. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. It generally would not be subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income. The company was formerly known as Resource Capital Corp. and changed its name to Exantas Capital Corp. in May 2018. Exantas Capital Corp. was founded in 2005 and is based in New York, New York.

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