Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) and Healthcare Realty Trust (NYSE:HR – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Analyst Recommendations
This is a summary of current recommendations and price targets for Pebblebrook Hotel Trust and Healthcare Realty Trust, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pebblebrook Hotel Trust | 4 | 6 | 3 | 2 | 2.20 |
| Healthcare Realty Trust | 1 | 5 | 4 | 0 | 2.30 |
Pebblebrook Hotel Trust presently has a consensus target price of $16.90, suggesting a potential downside of 11.48%. Healthcare Realty Trust has a consensus target price of $21.67, suggesting a potential upside of 1.06%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Pebblebrook Hotel Trust.
Risk & Volatility
Dividends
Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 4.5%. Pebblebrook Hotel Trust pays out -5.0% of its earnings in the form of a dividend. Healthcare Realty Trust pays out -165.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Pebblebrook Hotel Trust and Healthcare Realty Trust”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pebblebrook Hotel Trust | $1.48 billion | 1.47 | -$65.81 million | ($0.80) | -23.87 |
| Healthcare Realty Trust | $1.18 billion | 6.29 | -$246.07 million | ($0.58) | -36.96 |
Pebblebrook Hotel Trust has higher revenue and earnings than Healthcare Realty Trust. Healthcare Realty Trust is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Pebblebrook Hotel Trust and Healthcare Realty Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pebblebrook Hotel Trust | -4.18% | -2.41% | -1.15% |
| Healthcare Realty Trust | -17.34% | -4.29% | -2.09% |
Summary
Pebblebrook Hotel Trust beats Healthcare Realty Trust on 8 of the 15 factors compared between the two stocks.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
About Healthcare Realty Trust
Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.
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