Apple Hospitality REIT, Inc. (APLE) vs RLJ Lodging Trust (RLJ)

Apple Hospitality REIT, Inc. and RLJ Lodging Trust are both Reit Hotel & Motel companies. Apple Hospitality REIT, Inc. is the larger, with a market value of $3.8B against $1.7B — 2.2× the size. RLJ Lodging Trust has negative trailing earnings, so its P/E is not meaningful; Apple Hospitality REIT, Inc. trades at 21.9×. Apple Hospitality REIT, Inc. grew revenue faster over the last twelve months: 1.17% against 1.07%. Apple Hospitality REIT, Inc. has the higher net margin (12.2% vs 0.18%) and the higher return on invested capital (3.40% vs 2.12%). Both pay a dividend; Apple Hospitality REIT, Inc. yields more (6.40% vs 3.02%). Across the 21 metrics below, Apple Hospitality REIT, Inc. leads on 12 and RLJ Lodging Trust on 9.

Valuation

Metric APLE RLJ Reit Hotel & Motel median
P/E 21.88 n/m 25.03
P/S 2.65 1.22 1.53
P/B 1.22 0.93 1.05
Price to free cash flow 13.74 7.25 7.25
EV/EBITDA 15.27 9.76 11.74
EV/Sales 4.81 2.46 2.64
Earnings yield 4.57% 0.00% (0.39%)
Free cash flow yield 7.28% 13.78% 7.53%

Profitability

Metric APLE RLJ Reit Hotel & Motel median
Gross margin 60.06% 61.99% 37.37%
Operating margin 17.93% 9.53% 9.53%
Net margin 12.17% 0.18% (0.66%)
Free cash flow margin 19.32% 16.75% 17.01%
Return on equity 5.53% 0.13% 0.53%
Return on assets 3.58% 0.05% (0.26%)
Return on invested capital 3.40% 2.12% 2.16%

Growth

Metric APLE RLJ Reit Hotel & Motel median
Revenue growth (TTM) 1.17% 1.07% 1.17%
EPS growth (last fiscal year) (16.85%) (96.30%) —
Revenue growth, 5-year CAGR 18.60% 23.33% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APLE RLJ Reit Hotel & Motel median
Debt to equity 0.51 1.24 0.83
Current ratio 0.73 5.71 1.34
Net debt to EBITDA 3.64 5.14 5.14

Dividend

Metric APLE RLJ Reit Hotel & Motel median
Dividend yield 6.40% 3.02% 3.10%
Payout ratio 1.30 0.81 0.48

Size

Metric APLE RLJ Reit Hotel & Motel median
Market cap 3.80b 1.70b 1.70b

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