Critical Contrast: Chesapeake Lodging Trust (CHSP) and LaSalle Hotel Properties (LHO)
Chesapeake Lodging Trust (NYSE: CHSP) and LaSalle Hotel Properties (NYSE:LHO) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.
Risk and Volatility
Chesapeake Lodging Trust has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.
This table compares Chesapeake Lodging Trust and LaSalle Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Lodging Trust||9.71%||5.11%||2.87%|
|LaSalle Hotel Properties||18.10%||8.31%||5.40%|
This is a breakdown of recent ratings and price targets for Chesapeake Lodging Trust and LaSalle Hotel Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Lodging Trust||1||4||2||0||2.14|
|LaSalle Hotel Properties||7||7||0||0||1.50|
Chesapeake Lodging Trust presently has a consensus target price of $26.40, suggesting a potential downside of 1.20%. LaSalle Hotel Properties has a consensus target price of $27.45, suggesting a potential downside of 7.50%. Given Chesapeake Lodging Trust’s stronger consensus rating and higher probable upside, equities analysts plainly believe Chesapeake Lodging Trust is more favorable than LaSalle Hotel Properties.
Institutional & Insider Ownership
99.9% of Chesapeake Lodging Trust shares are held by institutional investors. 2.2% of Chesapeake Lodging Trust shares are held by company insiders. Comparatively, 0.4% of LaSalle Hotel Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Chesapeake Lodging Trust and LaSalle Hotel Properties’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Lodging Trust||$619.70 million||2.59||$76.70 million||$0.81||32.99|
|LaSalle Hotel Properties||$1.23 billion||2.74||$252.78 million||$1.62||18.32|
LaSalle Hotel Properties has higher revenue and earnings than Chesapeake Lodging Trust. LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Chesapeake Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 6.0%. LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.1%. Chesapeake Lodging Trust pays out 197.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties pays out 111.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
LaSalle Hotel Properties beats Chesapeake Lodging Trust on 10 of the 16 factors compared between the two stocks.
About Chesapeake Lodging Trust
Chesapeake Lodging Trust is a real estate investment trust. The Company is focused on investments primarily in upper-upscale hotels in various business and convention markets and, on a selective basis, select-service hotels in urban settings or other locations in the United States. The Company operates through the hotel ownership segment. The Company conducts its operations primarily though Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). As of February 17, 2017, the Company owned 22 hotels. As of February 17, 2017, the Company’s portfolio included Hyatt Regency Boston; Hilton Checkers Los Angeles; Boston Marriott Newton; Le Meridien San Francisco; Hotel Indigo San Diego Gaslamp Quarter; Courtyard Washington Capitol Hill/Navy Yard; Hotel Adagio San Francisco, Autograph Collection; Denver Marriott City Center; Hyatt Herald Square New York, and Ace Hotel and Theater Downtown Los Angeles. As of February 17, 2017, the Company’s hotels had 6,694 rooms.
About LaSalle Hotel Properties
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
Receive News & Ratings for Chesapeake Lodging Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chesapeake Lodging Trust and related companies with MarketBeat.com's FREE daily email newsletter.