Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) and Chatham Lodging Trust (NYSE:CLDT – Get Free Report) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, valuation, analyst recommendations, profitability and earnings.
Risk & Volatility
Pebblebrook Hotel Trust has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Dividends
Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Pebblebrook Hotel Trust pays out -4.5% of its earnings in the form of a dividend. Chatham Lodging Trust pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust has raised its dividend for 2 consecutive years. Chatham Lodging Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Pebblebrook Hotel Trust and Chatham Lodging Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Pebblebrook Hotel Trust | -4.55% | -2.73% | -1.30% |
| Chatham Lodging Trust | 5.03% | 2.06% | 1.29% |
Valuation & Earnings
This table compares Pebblebrook Hotel Trust and Chatham Lodging Trust”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Pebblebrook Hotel Trust | $1.48 billion | 1.66 | -$65.81 million | ($0.88) | -24.94 |
| Chatham Lodging Trust | $295.08 million | 2.53 | $15.05 million | $0.16 | 100.03 |
Chatham Lodging Trust has lower revenue, but higher earnings than Pebblebrook Hotel Trust. Pebblebrook Hotel Trust 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.
Insider & Institutional Ownership
88.4% of Chatham Lodging Trust shares are owned by institutional investors. 3.7% of Pebblebrook Hotel Trust shares are owned by insiders. Comparatively, 8.1% of Chatham Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Pebblebrook Hotel Trust and Chatham Lodging Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Pebblebrook Hotel Trust | 3 | 6 | 3 | 2 | 2.29 |
| Chatham Lodging Trust | 0 | 2 | 3 | 1 | 2.83 |
Pebblebrook Hotel Trust currently has a consensus target price of $18.27, suggesting a potential downside of 16.75%. Chatham Lodging Trust has a consensus target price of $14.25, suggesting a potential downside of 10.97%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Chatham Lodging Trust is more favorable than Pebblebrook Hotel Trust.
Summary
Chatham Lodging Trust beats Pebblebrook Hotel Trust on 13 of the 17 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 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.
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