Comparing Apple Hospitality REIT (NYSE:APLE) & Alexandria Real Estate Equities (NYSE:ARE)

Apple Hospitality REIT (NYSE:APLE) and Alexandria Real Estate Equities (NYSE:ARE) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Profitability

This table compares Apple Hospitality REIT and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apple Hospitality REIT	12.08%	5.43%	3.50%
Alexandria Real Estate Equities	-36.03%	-5.21%	-2.96%

Dividends

Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.7%. Alexandria Real Estate Equities pays an annual dividend of $2.88 per share and has a dividend yield of 5.4%. Apple Hospitality REIT pays out 131.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out -45.9% of its earnings in the form of a dividend. Alexandria Real Estate Equities has increased its dividend for 15 consecutive years.

Earnings & Valuation

This table compares Apple Hospitality REIT and Alexandria Real Estate Equities”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple Hospitality REIT	$1.41 billion	2.82	$175.36 million	$0.73	23.08
Alexandria Real Estate Equities	$3.03 billion	3.04	-$1.43 billion	($6.27)	-8.43

Apple Hospitality REIT has higher earnings, but lower revenue than Alexandria Real Estate Equities. Alexandria Real Estate Equities 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.

Risk & Volatility

Apple Hospitality REIT has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Insider and Institutional Ownership

89.7% of Apple Hospitality REIT shares are held by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are held by institutional investors. 6.9% of Apple Hospitality REIT shares are held by insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Apple Hospitality REIT and Alexandria Real Estate Equities, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple Hospitality REIT	0	6	3	0	2.33
Alexandria Real Estate Equities	3	10	3	0	2.00

Apple Hospitality REIT currently has a consensus price target of $14.94, indicating a potential downside of 11.36%. Alexandria Real Estate Equities has a consensus price target of $51.62, indicating a potential downside of 2.39%. Given Alexandria Real Estate Equities’ higher probable upside, analysts clearly believe Alexandria Real Estate Equities is more favorable than Apple Hospitality REIT.

Summary

Apple Hospitality REIT beats Alexandria Real Estate Equities on 9 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 Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.