Comparing TPG RE Finance Trust (NYSE:TRTX) and Apple Hospitality REIT (NYSE:APLE)

Apple Hospitality REIT (NYSE:APLE) and TPG RE Finance Trust (NYSE:TRTX) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Apple Hospitality REIT and TPG RE Finance Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple Hospitality REIT	$1.34 billion	2.56	$177.49 million	$0.86	16.52
TPG RE Finance Trust	$390.25 million	1.76	-$116.63 million	($1.57)	-5.46

Apple Hospitality REIT has higher revenue and earnings than TPG RE Finance Trust. TPG RE Finance Trust is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Apple Hospitality REIT and TPG RE Finance Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apple Hospitality REIT	14.58%	6.11%	4.07%
TPG RE Finance Trust	-27.55%	-21.63%	-5.69%

Analyst Ratings

This is a breakdown of current ratings for Apple Hospitality REIT and TPG RE Finance Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple Hospitality REIT	0	4	2	0	2.33
TPG RE Finance Trust	1	1	3	0	2.40

Apple Hospitality REIT presently has a consensus price target of $17.83, suggesting a potential upside of 25.50%. TPG RE Finance Trust has a consensus price target of $8.10, suggesting a potential downside of 5.59%. Given Apple Hospitality REIT’s higher possible upside, analysts plainly believe Apple Hospitality REIT is more favorable than TPG RE Finance Trust.

Insider and Institutional Ownership

89.7% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 57.1% of TPG RE Finance Trust shares are held by institutional investors. 6.8% of Apple Hospitality REIT shares are held by insiders. Comparatively, 2.5% of TPG RE Finance Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 6.8%. TPG RE Finance Trust pays an annual dividend of $0.96 per share and has a dividend yield of 11.2%. Apple Hospitality REIT pays out 111.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG RE Finance Trust pays out -61.1% of its earnings in the form of a dividend. TPG RE Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Apple Hospitality REIT has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, TPG RE Finance Trust has a beta of 2.19, suggesting that its stock price is 119% more volatile than the S&P 500.

Summary

Apple Hospitality REIT beats TPG RE Finance Trust on 11 of the 16 factors compared between the two stocks.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 223 hotels with more than 29,400 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc., a commercial real estate finance company, originates, acquires, and manages commercial mortgage loans and other commercial real estate-related debt instruments in the United States. It invests in commercial mortgage loans; subordinate mortgage interests, mezzanine loans, secured real estate securities, note financing, preferred equity, and miscellaneous debt instruments; and commercial real estate collateralized loan obligations and commercial mortgage-backed securities secured by properties primarily in the multifamily, life science, mixed-use, hospitality, self storage, industrial, and retail real estate sectors. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. TPG RE Finance Trust, Inc. was incorporated in 2014 and is based in New York, New York.