Reviewing Getty Realty (NYSE:GTY) & Pebblebrook Hotel Trust (NYSE:PEB)

Getty Realty (NYSE:GTY) and Pebblebrook Hotel Trust (NYSE:PEB) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Insider and Institutional Ownership

85.1% of Getty Realty shares are owned by institutional investors. 8.8% of Getty Realty shares are owned by insiders. Comparatively, 3.1% of Pebblebrook Hotel 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.

Valuation and Earnings

This table compares Getty Realty and Pebblebrook Hotel Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Getty Realty	$214.19 million	7.59	$71.06 million	$1.28	22.00
Pebblebrook Hotel Trust	$1.45 billion	0.96	-$4.24 million	($1.19)	-10.37

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Getty Realty and Pebblebrook Hotel Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Getty Realty	0	3	2	0	2.40
Pebblebrook Hotel Trust	5	5	2	0	1.75

Getty Realty currently has a consensus target price of $31.25, indicating a potential upside of 10.99%. Pebblebrook Hotel Trust has a consensus target price of $11.91, indicating a potential downside of 3.49%. Given Getty Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Getty Realty is more favorable than Pebblebrook Hotel Trust.

Volatility & Risk

Getty Realty has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.

Dividends

Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.9%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Getty Realty pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -3.4% of its earnings in the form of a dividend. Getty Realty has increased its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Getty Realty and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Getty Realty	34.76%	7.60%	3.72%
Pebblebrook Hotel Trust	-7.45%	-4.02%	-1.93%

Summary

Getty Realty beats Pebblebrook Hotel Trust on 13 of the 16 factors compared between the two stocks.

About Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.

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.