Service Properties Trust (NASDAQ:SVC) & RLJ Lodging Trust (OTCMKTS:RLJ.PA) Financial Review
by Renee Jackson · The Cerbat GemService Properties Trust (NASDAQ:SVC – Get Free Report) and RLJ Lodging Trust (OTCMKTS:RLJ.PA – Get Free Report) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Analyst Recommendations
This is a summary of recent ratings and price targets for Service Properties Trust and RLJ Lodging Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Service Properties Trust | 2 | 1 | 3 | 0 | 2.17 |
| RLJ Lodging Trust | 0 | 0 | 0 | 0 | 0.00 |
Service Properties Trust currently has a consensus price target of $12.81, indicating a potential upside of 62.60%. Given Service Properties Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Service Properties Trust is more favorable than RLJ Lodging Trust.
Insider and Institutional Ownership
77.6% of Service Properties Trust shares are held by institutional investors. 1.6% of Service Properties Trust shares are held by company 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.
Profitability
This table compares Service Properties Trust and RLJ Lodging Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Service Properties Trust | -13.59% | -38.18% | -3.58% |
| RLJ Lodging Trust | N/A | N/A | N/A |
Valuation and Earnings
This table compares Service Properties Trust and RLJ Lodging Trust”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Service Properties Trust | $1.81 billion | 0.56 | -$202.32 million | ($7.10) | -1.11 |
| RLJ Lodging Trust | N/A | N/A | N/A | N/A | N/A |
RLJ Lodging Trust has lower revenue, but higher earnings than Service Properties Trust.
Summary
Service Properties Trust beats RLJ Lodging Trust on 6 of the 9 factors compared between the two stocks.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
About RLJ Lodging Trust
RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio consists of 103 hotels with approximately 22,570 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.