Sotherly Hotels (NASDAQ:SOHO) & One Liberty Properties (NYSE:OLP) Head-To-Head Review

Sotherly Hotels (NASDAQ:SOHO) and One Liberty Properties (NYSE:OLP) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sotherly Hotels and One Liberty Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sotherly Hotels	0	1	0	0	2.00
One Liberty Properties	0	0	1	0	3.00

Sotherly Hotels currently has a consensus price target of $1.50, suggesting a potential upside of 20.00%. One Liberty Properties has a consensus price target of $28.00, suggesting a potential upside of 0.47%. Given Sotherly Hotels’ higher possible upside, equities research analysts plainly believe Sotherly Hotels is more favorable than One Liberty Properties.

Dividends

Sotherly Hotels pays an annual dividend of $0.52 per share and has a dividend yield of 41.6%. One Liberty Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.5%. Sotherly Hotels pays out -247.6% of its earnings in the form of a dividend. One Liberty Properties pays out 132.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sotherly Hotels is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Sotherly Hotels and One Liberty Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sotherly Hotels	1.88%	6.82%	0.84%
One Liberty Properties	36.11%	10.58%	4.26%

Risk and Volatility

Sotherly Hotels has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, One Liberty Properties has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Institutional & Insider Ownership

27.5% of Sotherly Hotels shares are owned by institutional investors. Comparatively, 36.2% of One Liberty Properties shares are owned by institutional investors. 15.9% of Sotherly Hotels shares are owned by insiders. Comparatively, 25.4% of One Liberty Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Sotherly Hotels and One Liberty Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sotherly Hotels	$178.57 million	0.14	$3.94 million	($0.21)	-5.95
One Liberty Properties	$89.78 million	6.54	$29.61 million	$1.36	20.49

One Liberty Properties has lower revenue, but higher earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than One Liberty Properties, indicating that it is currently the more affordable of the two stocks.

Summary

One Liberty Properties beats Sotherly Hotels on 11 of the 16 factors compared between the two stocks.

About Sotherly Hotels

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 One Liberty Properties

One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial and retail properties. Many of these properties are subject to long-term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.