Contrasting Keppel REIT (OTCMKTS:KREVF) and Apple Hospitality REIT (NYSE:APLE)

Apple Hospitality REIT (NYSE:APLE) and Keppel REIT (OTCMKTS:KREVF) are both mid-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Apple Hospitality REIT and Keppel REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple Hospitality REIT	0	5	3	0	2.38
Keppel REIT	0	1	0	0	2.00

Apple Hospitality REIT presently has a consensus target price of $14.21, suggesting a potential downside of 11.96%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, research analysts clearly believe Apple Hospitality REIT is more favorable than Keppel REIT.

Valuation and Earnings

This table compares Apple Hospitality REIT and Keppel REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple Hospitality REIT	$1.41 billion	2.70	$175.36 million	$0.73	22.12
Keppel REIT	$210.12 million	11.48	$347.92 million	N/A	N/A

Keppel REIT has lower revenue, but higher earnings than Apple Hospitality REIT.

Profitability

This table compares Apple Hospitality REIT and Keppel REIT’s 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%
Keppel REIT	N/A	N/A	N/A

Insider & Institutional Ownership

89.7% of Apple Hospitality REIT shares are held by institutional investors. 6.9% of Apple Hospitality REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Apple Hospitality REIT has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Keppel REIT has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Summary

Apple Hospitality REIT beats Keppel REIT on 10 of the 12 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 Keppel REIT

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts. Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific. Keppel REIT has a portfolio value of over $9.0 billion, comprising properties in Singapore; the key Australian cities of Sydney, Melbourne and Perth; Seoul, South Korea; as well as Tokyo, Japan. Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.