Chatham Lodging Trust (NYSE:CLDT – Get Free Report) and EastGroup Properties (NYSE:EGP – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Insider and Institutional Ownership
88.4% of Chatham Lodging Trust shares are owned by institutional investors. Comparatively, 92.1% of EastGroup Properties shares are owned by institutional investors. 8.1% of Chatham Lodging Trust shares are owned by company insiders. Comparatively, 1.0% of EastGroup Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Chatham Lodging Trust and EastGroup Properties, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chatham Lodging Trust | 1 | 1 | 2 | 0 | 2.25 |
| EastGroup Properties | 0 | 5 | 10 | 0 | 2.67 |
Risk and Volatility
Chatham Lodging Trust has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, EastGroup Properties has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Dividends
Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. EastGroup Properties pays an annual dividend of $6.20 per share and has a dividend yield of 3.0%. Chatham Lodging Trust pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EastGroup Properties pays out 112.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust has raised its dividend for 2 consecutive years and EastGroup Properties has raised its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Chatham Lodging Trust and EastGroup Properties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chatham Lodging Trust | $295.08 million | 1.69 | $15.05 million | $0.02 | 534.60 |
| EastGroup Properties | $721.34 million | 15.31 | $257.40 million | $5.50 | 37.35 |
EastGroup Properties has higher revenue and earnings than Chatham Lodging Trust. EastGroup Properties is trading at a lower price-to-earnings ratio than Chatham Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Chatham Lodging Trust and EastGroup Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chatham Lodging Trust | 3.14% | 1.18% | 0.77% |
| EastGroup Properties | 39.69% | 8.37% | 5.45% |
Summary
EastGroup Properties beats Chatham Lodging Trust on 12 of the 16 factors compared between the two stocks.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.
About EastGroup Properties
EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 1000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. The Company's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 59 million square feet.
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