PennyMac Mortgage Investment Trust (NYSE:PMT) versus Apple Hospitality REIT (NYSE:APLE) Financial Survey

PennyMac Mortgage Investment Trust (NYSE:PMT) and Apple Hospitality REIT (NYSE:APLE) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares PennyMac Mortgage Investment Trust and Apple Hospitality REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennyMac Mortgage Investment Trust	48.17%	11.48%	1.24%
Apple Hospitality REIT	14.53%	6.17%	4.09%

Analyst Ratings

This is a breakdown of recent ratings for PennyMac Mortgage Investment Trust and Apple Hospitality REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Mortgage Investment Trust	0	5	3	0	2.38
Apple Hospitality REIT	0	1	3	0	2.75

PennyMac Mortgage Investment Trust currently has a consensus price target of $14.50, suggesting a potential upside of 19.66%. Apple Hospitality REIT has a consensus price target of $17.25, suggesting a potential upside of 48.39%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, analysts clearly believe Apple Hospitality REIT is more favorable than PennyMac Mortgage Investment Trust.

Institutional & Insider Ownership

67.4% of PennyMac Mortgage Investment Trust shares are owned by institutional investors. Comparatively, 89.7% of Apple Hospitality REIT shares are owned by institutional investors. 0.9% of PennyMac Mortgage Investment Trust shares are owned by company insiders. Comparatively, 7.1% of Apple Hospitality REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 13.2%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 8.3%. PennyMac Mortgage Investment Trust pays out 172.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Apple Hospitality REIT pays out 121.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares PennyMac Mortgage Investment Trust and Apple Hospitality REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Mortgage Investment Trust	$150.20 million	7.02	$160.98 million	$0.93	13.03
Apple Hospitality REIT	$1.43 billion	1.93	$177.49 million	$0.79	14.72

Apple Hospitality REIT has higher revenue and earnings than PennyMac Mortgage Investment Trust. PennyMac Mortgage Investment 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.

Volatility and Risk

PennyMac Mortgage Investment Trust has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Summary

Apple Hospitality REIT beats PennyMac Mortgage Investment Trust on 9 of the 15 factors compared between the two stocks.

About PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. 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 shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.

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.