Postal Realty Trust (NYSE:PSTL) & Chatham Lodging Trust (NYSE:CLDT) Head-To-Head Review

Postal Realty Trust (NYSE:PSTL) and Chatham Lodging Trust (NYSE:CLDT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

Postal Realty Trust pays an annual dividend of $0.98 per share and has a dividend yield of 4.2%. Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 4.0%. Postal Realty Trust pays out 192.2% 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 pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Postal Realty Trust has raised its dividend for 3 consecutive years and Chatham Lodging Trust has raised its dividend for 2 consecutive years. Postal Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Postal Realty Trust and Chatham Lodging Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Postal Realty Trust	$95.82 million	6.70	$14.15 million	$0.51	45.83
Chatham Lodging Trust	$295.08 million	1.58	$15.05 million	$0.02	494.70

Chatham Lodging Trust has higher revenue and earnings than Postal Realty Trust. Postal Realty 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.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Postal Realty Trust and Chatham Lodging Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Postal Realty Trust	0	2	5	1	2.88
Chatham Lodging Trust	0	2	2	0	2.50

Postal Realty Trust presently has a consensus target price of $22.21, indicating a potential downside of 4.99%. Chatham Lodging Trust has a consensus target price of $11.00, indicating a potential upside of 11.18%. Given Chatham Lodging Trust’s higher probable upside, analysts plainly believe Chatham Lodging Trust is more favorable than Postal Realty Trust.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Postal Realty Trust	15.84%	4.53%	2.14%
Chatham Lodging Trust	3.14%	1.18%	0.77%

Insider & Institutional Ownership

57.9% of Postal Realty Trust shares are held by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are held by institutional investors. 12.5% of Postal Realty Trust shares are held by company insiders. Comparatively, 8.1% of Chatham Lodging Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Postal Realty Trust has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Summary

Postal Realty Trust beats Chatham Lodging Trust on 12 of the 18 factors compared between the two stocks.

About Postal Realty Trust

Postal Realty Trust, Inc. (NYSE: PSTL) is an internally managed real estate investment trust that owns properties primarily leased to the United States Postal Service ("USPS"). PSTL is focused on acquiring the network of USPS properties, which provide a critical element of the nation's logistics infrastructure that facilitates cost effective and efficient last-mile delivery solutions. As of December 31, 2023, PSTL owned 1,509 properties (including two properties accounted for as financing leases) located in 49 states and one territory comprising approximately 5.9 million net leasable interior square feet. Subsequent to quarter-end and through February 23, 2024, PSTL closed on eight additional properties comprising approximately 33,000 net leasable interior square feet.

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.