Extended Stay America (NYSE: STAY) is one of 93 public companies in the “LEISURE SERVICES” industry, but how does it weigh in compared to its peers? We will compare Extended Stay America to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Volatility and Risk
Extended Stay America has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Extended Stay America’s peers have a beta of 0.94, suggesting that their average stock price is 6% less volatile than the S&P 500.
This table compares Extended Stay America and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extended Stay America||6.15%||14.42%||4.71%|
|Extended Stay America Competitors||1.27%||39.05%||3.45%|
This is a breakdown of current ratings for Extended Stay America and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extended Stay America||0||1||7||0||2.88|
|Extended Stay America Competitors||566||2468||4137||113||2.52|
Extended Stay America presently has a consensus target price of $20.94, suggesting a potential upside of 9.74%. As a group, “LEISURE SERVICES” companies have a potential upside of 6.57%. Given Extended Stay America’s stronger consensus rating and higher possible upside, research analysts clearly believe Extended Stay America is more favorable than its peers.
Insider & Institutional Ownership
98.9% of Extended Stay America shares are held by institutional investors. Comparatively, 58.9% of shares of all “LEISURE SERVICES” companies are held by institutional investors. 0.6% of Extended Stay America shares are held by insiders. Comparatively, 21.5% of shares of all “LEISURE SERVICES” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Extended Stay America and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Extended Stay America||$1.28 billion||$78.84 million||46.54|
|Extended Stay America Competitors||$2.94 billion||$266.84 million||10.45|
Extended Stay America’s peers have higher revenue and earnings than Extended Stay America. Extended Stay America is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Extended Stay America pays an annual dividend of $0.84 per share and has a dividend yield of 4.4%. Extended Stay America pays out 204.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “LEISURE SERVICES” companies pay a dividend yield of 1.8% and pay out 42.1% of their earnings in the form of a dividend. Extended Stay America has increased its dividend for 3 consecutive years.
Extended Stay America beats its peers on 9 of the 15 factors compared.
Extended Stay America Company Profile
Extended Stay America, Inc. is a owner/operator of company-branded hotels in North America. The Company operates in the extended stay lodging industry. The Company owns and operates approximately 700 hotel properties consisting of approximately 75,900 rooms located in 44 states across the United States of America and in Canada. The Company owns and operates hotels under the core brand, Extended Stay America. In addition, the Company owns and operates three Extended Stay Canada hotels, 49 hotels in the economy extended stay segment under the Crossland Economy Studios and Hometown Inn brands, and also manage two Extended Stay America hotels.
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