BRAEMAR HOTELS & RESORTS (NYSE:BHR) versus Service Properties Trust (NASDAQ:SVC) Head-To-Head Analysis

BRAEMAR HOTELS & RESORTS (NYSE:BHR) and Service Properties Trust (NASDAQ:SVC) are both small-cap real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for BRAEMAR HOTELS & RESORTS and Service Properties Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67
Service Properties Trust	1	2	3	0	2.33

BRAEMAR HOTELS & RESORTS currently has a consensus price target of $2.50, suggesting a potential upside of 39.28%. Service Properties Trust has a consensus price target of $12.81, suggesting a potential upside of 92.38%. Given Service Properties Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Service Properties Trust is more favorable than BRAEMAR HOTELS & RESORTS.

Profitability

This table compares BRAEMAR HOTELS & RESORTS and Service Properties Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRAEMAR HOTELS & RESORTS	-0.45%	-1.92%	-0.17%
Service Properties Trust	-25.44%	-65.18%	-6.66%

Valuation and Earnings

This table compares BRAEMAR HOTELS & RESORTS and Service Properties Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRAEMAR HOTELS & RESORTS	$704.02 million	0.18	-$22.32 million	($0.73)	-2.46
Service Properties Trust	$1.81 billion	0.48	-$202.32 million	($7.70)	-0.86

BRAEMAR HOTELS & RESORTS has higher earnings, but lower revenue than Service Properties Trust. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Service Properties Trust, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. Comparatively, 77.6% of Service Properties Trust shares are owned by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by insiders. Comparatively, 1.6% of Service Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

BRAEMAR HOTELS & RESORTS has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Service Properties Trust has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Summary

Service Properties Trust beats BRAEMAR HOTELS & RESORTS on 8 of the 14 factors compared between the two stocks.

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).

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.