Critical Comparison: RLJ Lodging Trust (OTCMKTS:RLJ.PA) versus Chatham Lodging Trust (NYSE:CLDT)

Chatham Lodging Trust (NYSE:CLDT) and RLJ Lodging Trust (OTCMKTS:RLJ.PA) are both real estate companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Chatham Lodging Trust and RLJ Lodging Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	3	2	0	2.40
RLJ Lodging Trust	0	0	0	0	0.00

Chatham Lodging Trust presently has a consensus price target of $13.00, suggesting a potential downside of 3.49%. Given RLJ Lodging Trust’s higher possible upside, analysts plainly believe RLJ Lodging Trust is more favorable than Chatham Lodging Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chatham Lodging Trust	4.00%	1.56%	1.00%
RLJ Lodging Trust	N/A	N/A	N/A

Earnings and Valuation

This table compares Chatham Lodging Trust and RLJ Lodging Trust”s gross 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	2.13	$15.05 million	$0.08	168.38
RLJ Lodging Trust	N/A	N/A	N/A	N/A	N/A

Chatham Lodging Trust has higher revenue and earnings than RLJ Lodging Trust.

Institutional and Insider Ownership

88.4% of Chatham Lodging Trust shares are held by institutional investors. 8.1% of Chatham Lodging Trust shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Chatham Lodging Trust beats RLJ Lodging Trust on 8 of the 9 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 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 103 hotels with approximately 22,570 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.