Weyerhaeuser (NYSE:WY) and Hersha Hospitality Trust (NYSE:HT) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.
Risk & Volatility
Weyerhaeuser has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Hersha Hospitality Trust has a beta of 2.79, indicating that its stock price is 179% more volatile than the S&P 500.
Earnings & Valuation
This table compares Weyerhaeuser and Hersha Hospitality Trust's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Weyerhaeuser | $6.55 billion | 3.70 | $-76,000,000.00 | $0.39 | 83.38 |
Hersha Hospitality Trust | $529.96 million | 0.59 | $-3,670,000.00 | $1.94 | 4.12 |
Hersha Hospitality Trust has lower revenue, but higher earnings than Weyerhaeuser. Hersha Hospitality Trust is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
77.5% of Weyerhaeuser shares are owned by institutional investors. Comparatively, 69.2% of Hersha Hospitality Trust shares are owned by institutional investors. 0.3% of Weyerhaeuser shares are owned by company insiders. Comparatively, 12.9% of Hersha Hospitality Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Weyerhaeuser and Hersha Hospitality Trust's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Hersha Hospitality Trust | -51.54% | -17.94% | -6.80% |
Analyst Ratings
This is a summary of recent recommendations for Weyerhaeuser and Hersha Hospitality Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Weyerhaeuser | 0 | 3 | 5 | 0 | 2.63 |
Hersha Hospitality Trust | 3 | 5 | 0 | 0 | 1.63 |
Weyerhaeuser currently has a consensus target price of $30.50, suggesting a potential downside of 6.21%. Hersha Hospitality Trust has a consensus target price of $6.00, suggesting a potential downside of 25.00%. Given Weyerhaeuser's stronger consensus rating and higher probable upside, equities research analysts clearly believe Weyerhaeuser is more favorable than Hersha Hospitality Trust.
Summary
Weyerhaeuser beats Hersha Hospitality Trust on 10 of the 14 factors compared between the two stocks.