CoreSite Realty (COR) & RLJ Lodging Trust (RLJ) Head-To-Head Analysis

CoreSite Realty (NYSE:COR) and RLJ Lodging Trust (NYSE:RLJ) are both mid-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Earnings & Valuation

This table compares CoreSite Realty and RLJ Lodging Trust’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CoreSite Realty $481.82 million 7.47 $74.85 million $4.52 23.09
RLJ Lodging Trust $1.36 billion 2.59 $74.83 million $2.40 8.35

CoreSite Realty has higher earnings, but lower revenue than RLJ Lodging Trust. RLJ Lodging Trust is trading at a lower price-to-earnings ratio than CoreSite Realty, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for CoreSite Realty and RLJ Lodging Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CoreSite Realty 0 7 9 0 2.56
RLJ Lodging Trust 1 4 3 0 2.25

CoreSite Realty currently has a consensus price target of $120.85, indicating a potential upside of 15.78%. RLJ Lodging Trust has a consensus price target of $22.57, indicating a potential upside of 12.69%. Given CoreSite Realty’s stronger consensus rating and higher probable upside, analysts plainly believe CoreSite Realty is more favorable than RLJ Lodging Trust.

Dividends

CoreSite Realty pays an annual dividend of $4.12 per share and has a dividend yield of 3.9%. RLJ Lodging Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.6%. CoreSite Realty pays out 91.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLJ Lodging Trust pays out 55.0% of its earnings in the form of a dividend. CoreSite Realty has increased its dividend for 7 consecutive years and RLJ Lodging Trust has increased its dividend for 7 consecutive years. RLJ Lodging Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares CoreSite Realty and RLJ Lodging Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CoreSite Realty 15.23% 19.09% 4.87%
RLJ Lodging Trust 5.72% 3.11% 1.48%

Insider and Institutional Ownership

96.7% of CoreSite Realty shares are held by institutional investors. Comparatively, 98.5% of RLJ Lodging Trust shares are held by institutional investors. 1.5% of CoreSite Realty shares are held by insiders. Comparatively, 1.6% of RLJ Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

CoreSite Realty has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

CoreSite Realty beats RLJ Lodging Trust on 10 of the 16 factors compared between the two stocks.

About CoreSite Realty

CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world's leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 450+ dedicated employees consistently deliver unmatched data center options ? all of which leads to a best-in-class customer experience and lasting relationships.

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 154 hotels with approximately 30,000 rooms located in 26 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.

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