Head-To-Head Analysis: American Hotel Income Properties REIT (OTCMKTS:AHOTF) and Sotherly Hotels (NASDAQ:SOHO)

Sotherly Hotels (NASDAQ:SOHO) and American Hotel Income Properties REIT (OTCMKTS:AHOTF) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Valuation and Earnings

This table compares Sotherly Hotels and American Hotel Income Properties REIT’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	$173.84 million	0.15	$3.94 million	($0.21)	-6.38
American Hotel Income Properties REIT	N/A	N/A	N/A	$0.06	8.10

Sotherly Hotels has higher revenue and earnings than American Hotel Income Properties REIT. Sotherly Hotels is trading at a lower price-to-earnings ratio than American Hotel Income Properties REIT, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sotherly Hotels and American Hotel Income Properties REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sotherly Hotels	2.27%	7.81%	0.98%
American Hotel Income Properties REIT	N/A	N/A	N/A

Institutional & Insider Ownership

27.5% of Sotherly Hotels shares are held by institutional investors. Comparatively, 10.3% of American Hotel Income Properties REIT shares are held by institutional investors. 14.6% of Sotherly Hotels 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.

Analyst Ratings

This is a breakdown of current ratings for Sotherly Hotels and American Hotel Income Properties REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sotherly Hotels	0	1	0	0	2.00
American Hotel Income Properties REIT	0	0	0	0	N/A

Sotherly Hotels currently has a consensus price target of $2.25, suggesting a potential upside of 67.91%. American Hotel Income Properties REIT has a consensus price target of $3.75, suggesting a potential upside of 662.20%. Given American Hotel Income Properties REIT’s higher possible upside, analysts clearly believe American Hotel Income Properties REIT is more favorable than Sotherly Hotels.

Summary

Sotherly Hotels beats American Hotel Income Properties REIT on 6 of the 9 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 American Hotel Income Properties REIT

American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP's portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. AHIP's long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.