Head-To-Head Survey: RLJ Lodging Trust (NYSE:RLJ) & InnSuites Hospitality Trust (NYSE:IHT)

InnSuites Hospitality Trust (NYSE:IHT) and RLJ Lodging Trust (NYSE:RLJ) are both small-cap real estate companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for InnSuites Hospitality Trust and RLJ Lodging Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	0.00
RLJ Lodging Trust	3	5	2	0	1.90

RLJ Lodging Trust has a consensus target price of $11.11, indicating a potential upside of 1.66%. Given RLJ Lodging Trust’s stronger consensus rating and higher probable upside, analysts plainly believe RLJ Lodging Trust is more favorable than InnSuites Hospitality Trust.

Earnings and Valuation

This table compares InnSuites Hospitality Trust and RLJ Lodging Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.56 million	1.69	$200,000.00	($0.14)	-9.71
RLJ Lodging Trust	$1.35 billion	1.23	$28.51 million	N/A	N/A

RLJ Lodging Trust has higher revenue and earnings than InnSuites Hospitality Trust.

Volatility and Risk

InnSuites Hospitality Trust has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares InnSuites Hospitality Trust and RLJ Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%
RLJ Lodging Trust	2.00%	1.52%	0.57%

Institutional and Insider Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. Comparatively, 92.3% of RLJ Lodging Trust shares are held by institutional investors. 68.1% of InnSuites Hospitality Trust shares are held by insiders. Comparatively, 3.7% of RLJ Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.5%. RLJ Lodging Trust pays an annual dividend of $0.60 per share and has a dividend yield of 5.5%. InnSuites Hospitality Trust pays out -14.3% of its earnings in the form of a dividend. RLJ Lodging Trust has increased its dividend for 3 consecutive years. RLJ Lodging Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

RLJ Lodging Trust beats InnSuites Hospitality Trust on 13 of the 16 factors compared between the two stocks.

About InnSuites Hospitality Trust

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.

About RLJ Lodging Trust

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.