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

Dividends

Chatham Lodging Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.3%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.3%. Chatham Lodging Trust pays out 197.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FelCor Lodging Trust pays out -51.1% of its earnings in the form of a dividend. FelCor Lodging Trust has raised its dividend for 3 consecutive years.

Institutional and Insider Ownership

77.2% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 78.8% of FelCor Lodging Trust shares are held by institutional investors. 3.6% of Chatham Lodging Trust shares are held by insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Chatham Lodging Trust has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Chatham Lodging Trust 9.03% 3.90% 2.04%
FelCor Lodging Trust -0.66% N/A -0.35%

Valuation & Earnings

This table compares Chatham Lodging Trust and FelCor Lodging Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chatham Lodging Trust $293.82 million 3.22 $31.48 million $0.67 31.16
FelCor Lodging Trust N/A N/A N/A ($0.47) -15.53

Chatham Lodging Trust has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging 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 summary of current recommendations for Chatham Lodging Trust and FelCor Lodging Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chatham Lodging Trust 0 6 1 0 2.14
FelCor Lodging Trust 0 1 0 0 2.00

Chatham Lodging Trust currently has a consensus target price of $20.70, suggesting a potential downside of 0.86%. FelCor Lodging Trust has a consensus target price of $7.00, suggesting a potential downside of 4.11%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, equities analysts plainly believe Chatham Lodging Trust is more favorable than FelCor Lodging Trust.

Summary

Chatham Lodging Trust beats FelCor Lodging Trust on 11 of the 15 factors compared between the two stocks.

Chatham Lodging Trust Company Profile

Chatham Lodging Trust is a real estate investment trust. The Company invests primarily in upscale extended-stay and premium-branded select-service hotels. All of the Company’s assets are held by, and all of its operations are conducted through Chatham Lodging, L.P. (the Operating Partnership). The Company owned 41 hotels with an aggregate of 6,163 rooms located in 16 states and the District of Columbia. The Company’s hotels included upscale extended-stay hotels that operate under the Residence Inn by Marriott brand (15 hotels) and Homewood Suites by Hilton brand (nine hotels), as well as premium-branded select-service hotels that operate under the Courtyard by Marriott brand (four hotels), the Hampton Inn or Hampton Inn and Suites by Hilton brand (three hotels), the Hilton Garden Inn by Hilton brand (three hotels), the SpringHill Suites by Marriott brand (two hotels) and the Hyatt Place brand (two hotels).

FelCor Lodging Trust Company Profile

FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.

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