Rexford Industrial Realty (NYSE: REXR) and Hospitality Properites Trust (NASDAQ:HPT) are both mid-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.
Analyst Recommendations
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This is a summary of current recommendations for Rexford Industrial Realty and Hospitality Properites Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rexford Industrial Realty | 1 | 3 | 4 | 0 | 2.38 |
| Hospitality Properites Trust | 0 | 4 | 3 | 0 | 2.43 |
Rexford Industrial Realty currently has a consensus price target of $32.25, indicating a potential upside of 2.54%. Hospitality Properites Trust has a consensus price target of $30.43, indicating a potential upside of 6.77%. Given Hospitality Properites Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Hospitality Properites Trust is more favorable than Rexford Industrial Realty.
Profitability
This table compares Rexford Industrial Realty and Hospitality Properites Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rexford Industrial Realty | 28.58% | 4.29% | 2.50% |
| Hospitality Properites Trust | 11.67% | 6.85% | 2.67% |
Volatility & Risk
Rexford Industrial Realty has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Hospitality Properites Trust has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Dividends
Rexford Industrial Realty pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Hospitality Properites Trust pays an annual dividend of $2.12 per share and has a dividend yield of 7.4%. Rexford Industrial Realty pays out 66.7% of its earnings in the form of a dividend. Hospitality Properites Trust pays out 59.4% 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. Rexford Industrial Realty has increased its dividend for 2 consecutive years. Hospitality Properites Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
74.2% of Hospitality Properites Trust shares are held by institutional investors. 1.8% of Rexford Industrial Realty shares are held by company insiders. Comparatively, 1.3% of Hospitality Properites Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Rexford Industrial Realty and Hospitality Properites Trust’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rexford Industrial Realty | $161.35 million | 15.80 | $40.71 million | $0.96 | 32.76 |
| Hospitality Properites Trust | $2.17 billion | 2.16 | $215.14 million | $3.57 | 7.98 |
Hospitality Properites Trust has higher revenue and earnings than Rexford Industrial Realty. Hospitality Properites Trust is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
Summary
Hospitality Properites Trust beats Rexford Industrial Realty on 11 of the 17 factors compared between the two stocks.
Rexford Industrial Realty Company Profile
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 150 properties with approximately 18.5 million rentable square feet and manages an additional 19 properties with approximately 1.2 million rentable square feet. For additional information, visit www.rexfordindustrial.com.
Hospitality Properites Trust Company Profile
Hospitality Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and travel centers located in 45 states, Puerto Rico and Canada. HPT's properties are operated under long term management or lease agreements. HPT is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
