InterRent Real Estate Investment Trust (OTCMKTS:IIPZF – Get Free Report) and Braemar Hotels & Resorts (NYSE:BHR – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Insider and Institutional Ownership
64.8% of Braemar Hotels & Resorts shares are held by institutional investors. 6.8% of InterRent Real Estate Investment Trust shares are held by company insiders. Comparatively, 1.8% of Braemar Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares InterRent Real Estate Investment Trust and Braemar Hotels & Resorts’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| InterRent Real Estate Investment Trust | -8.47% | -0.81% | -0.47% |
| Braemar Hotels & Resorts | -0.30% | -0.78% | -0.10% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| InterRent Real Estate Investment Trust | $175.65 million | 5.84 | $68.33 million | ($0.11) | -63.18 |
| Braemar Hotels & Resorts | $739.34 million | 0.23 | -$27.02 million | ($0.77) | -3.36 |
InterRent Real Estate Investment Trust has higher earnings, but lower revenue than Braemar Hotels & Resorts. InterRent Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Braemar Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.
Dividends
InterRent Real Estate Investment Trust pays an annual dividend of $0.27 per share and has a dividend yield of 3.9%. Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 7.7%. InterRent Real Estate Investment Trust pays out -245.5% of its earnings in the form of a dividend. Braemar Hotels & Resorts pays out -26.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
InterRent Real Estate Investment Trust has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Braemar Hotels & Resorts has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for InterRent Real Estate Investment Trust and Braemar Hotels & Resorts, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| InterRent Real Estate Investment Trust | 0 | 0 | 0 | 3 | 4.00 |
| Braemar Hotels & Resorts | 0 | 1 | 0 | 0 | 2.00 |
Braemar Hotels & Resorts has a consensus price target of $2.50, indicating a potential downside of 3.44%. Given Braemar Hotels & Resorts’ higher probable upside, analysts clearly believe Braemar Hotels & Resorts is more favorable than InterRent Real Estate Investment Trust.
Summary
Braemar Hotels & Resorts beats InterRent Real Estate Investment Trust on 9 of the 16 factors compared between the two stocks.
About InterRent Real Estate Investment Trust
InterRent?REIT is a growth-oriented real estate investment trust engaged in increasing Unitholder value and creating a growing and sustainable distribution?through the acquisition and ownership of multi-residential properties. InterRent’s strategy is to expand its portfolio primarily within?markets that have exhibited stable market vacancies,?sufficient suites available to attain the critical mass necessary to implement?an efficient portfolio management structure, and?offer opportunities for accretive acquisitions. InterRent’s primary objectives are to use the proven industry experience of the Trustees,?Management and Operational Team to: (i)?to grow both funds from operations per Unit and net asset value per Unit through investments in a diversified portfolio of multi-residential properties; (ii)?to provide Unitholders with sustainable and growing cash distributions, payable monthly; and (iii)?to maintain a conservative payout ratio and balance sheet.
About Braemar Hotels & Resorts
Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).
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