2 weeks Ago By ABMN Staff
Sotherly Hotels ( NASDAQ:SOHO – Get Free Report ) and Apollo Commercial Real Estate Finance ( NYSE:ARI – Get Free Report ) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations. Valuation and Earnings This table compares Sotherly Hotels and Apollo Commercial Real Estate Finance’s top-line revenue, earnings per share (EPS) and valuation. Apollo Commercial Real Estate Finance has higher revenue and earnings than Sotherly Hotels.
Apollo Commercial Real Estate Finance is trading at a lower price-to-earnings ratio than Sotherly Hotels, indicating that it is currently the more affordable of the two stocks. Profitability Insider & Institutional Ownership 27.5% of Sotherly Hotels shares are owned by institutional investors.
Comparatively, 54.4% of Apollo Commercial Real Estate Finance shares are owned by institutional investors. 15.
9% of Sotherly Hotels shares are owned by company insiders. Comparatively, 0.7% of Apollo Commercial Real Estate Finance shares are owned by company insiders.
Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth. Dividends Sotherly Hotels pays an annual dividend of $0.52 per share and has a dividend yield of 41.
6%. Apollo Commercial Real Estate Finance pays an annual dividend of $1.40 per share and has a dividend yield of 13.
3%. Sotherly Hotels pays out -247.6% of its earnings in the form of a dividend.
Apollo Commercial Real Estate Finance pays out -179.5% 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.
Sotherly Hotels is clearly the better dividend stock, given its higher yield and lower payout ratio. Analyst Recommendations This is a summary of current ratings for Sotherly Hotels and Apollo Commercial Real Estate Finance, as reported by MarketBeat.com.
Apollo Commercial Real Estate Finance has a consensus target price of $10.25, suggesting a potential downside of 2.71%.
Given Apollo Commercial Real Estate Finance’s higher possible upside, analysts clearly believe Apollo Commercial Real Estate Finance is more favorable than Sotherly Hotels. Volatility & Risk Sotherly Hotels has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.
Comparatively, Apollo Commercial Real Estate Finance has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500. About Sotherly Hotels ( Get Free Report ) Sotherly Hotels Inc.
is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs.
The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
About Apollo Commercial Real Estate Finance ( Get Free Report ) Apollo Commercial Real Estate Finance, Inc. operates as a real estate investment trust (REIT) that originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States, the United Kingdom, and Europe. It is qualified as a REIT under the Internal Revenue Code.
As a REIT, it would not be subject to federal income taxes, if the company distributes at least 90% of its REIT taxable income to its stockholders. Apollo Commercial Real Estate Finance, Inc. was incorporated in 2009 and is based in New York, New York.
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