Contrasting Pebblebrook Hotel Trust (NYSE:PEB) & Chatham Lodging Trust (NYSE:CLDT)

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

Earnings & Valuation

This table compares Chatham Lodging Trust 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
Chatham Lodging Trust	$301.45 million	2.32	$15.05 million	$0.08	187.30
Pebblebrook Hotel Trust	$1.48 billion	1.68	-$65.81 million	($0.88)	-25.16

Chatham Lodging Trust has higher earnings, but lower revenue 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.

Risk and Volatility

Chatham Lodging Trust has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500.

Insider & Institutional Ownership

88.4% of Chatham Lodging Trust shares are owned by institutional investors. 8.1% of Chatham Lodging Trust shares are owned by insiders. Comparatively, 3.7% of Pebblebrook Hotel Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Chatham Lodging Trust and Pebblebrook Hotel 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%
Pebblebrook Hotel Trust	-4.55%	-2.73%	-1.30%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Chatham Lodging Trust and Pebblebrook Hotel Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	2	3	1	2.83
Pebblebrook Hotel Trust	3	6	3	2	2.29

Chatham Lodging Trust currently has a consensus price target of $13.75, indicating a potential downside of 8.24%. Pebblebrook Hotel Trust has a consensus price target of $18.27, indicating a potential downside of 17.50%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Chatham Lodging Trust is more favorable than Pebblebrook Hotel Trust.

Dividends

Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Chatham Lodging Trust pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -4.5% of its earnings in the form of a dividend. Chatham Lodging Trust has increased 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.

Summary

Chatham Lodging Trust beats Pebblebrook Hotel Trust on 13 of the 17 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 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.