Critical Comparison: Apple Hospitality REIT (NYSE:APLE) and Highlands REIT (OTCMKTS:HHDS)

Apple Hospitality REIT (NYSE:APLE) and Highlands REIT (OTCMKTS:HHDS) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Apple Hospitality REIT	14.53%	6.17%	4.09%
Highlands REIT	-11.68%	-1.98%	-1.19%

Analyst Recommendations

This is a summary of recent ratings and price targets for Apple Hospitality REIT and Highlands REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple Hospitality REIT	0	3	1	0	2.25
Highlands REIT	0	0	0	0	0.00

Apple Hospitality REIT presently has a consensus price target of $16.50, indicating a potential upside of 2.42%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Apple Hospitality REIT is more favorable than Highlands REIT.

Volatility and Risk

Apple Hospitality REIT has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Highlands REIT has a beta of 18.41, suggesting that its stock price is 1,741% more volatile than the S&P 500.

Insider and Institutional Ownership

89.7% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 0.0% of Highlands REIT shares are held by institutional investors. 6.8% of Apple Hospitality REIT shares are held by insiders. Comparatively, 3.7% of Highlands REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Apple Hospitality REIT and Highlands REIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple Hospitality REIT	$1.41 billion	2.74	$177.49 million	$0.85	18.95
Highlands REIT	$30.98 million	0.47	-$10.30 million	N/A	N/A

Apple Hospitality REIT has higher revenue and earnings than Highlands REIT.

Summary

Apple Hospitality REIT beats Highlands REIT on 11 of the 12 factors compared between the two stocks.

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.

About Highlands REIT

We are a self-advised and self-administered real estate investment trust (REIT) created to own and manage substantially all of the non-core investment properties previously owned and managed by our former parent, InvenTrust Properties Corp., a Maryland corporation (InvenTrust). On April 28, 2016, we were spun-off from InvenTrust through a pro rata distribution (the Distribution) by InvenTrust of 100% of the outstanding shares of our common stock to holders of InvenTrust's common stock. Prior to or concurrent with the separation, we and InvenTrust engaged in certain reorganization transactions that were designed to consolidate substantially all of InvenTrust's remaining non-core investment properties in Highlands.