Head-To-Head Survey: Stag Industrial (NYSE:STAG) and Pebblebrook Hotel Trust (NYSE:PEB)

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

Valuation and Earnings

This table compares Stag Industrial and Pebblebrook Hotel Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stag Industrial	$845.18 million	8.73	$273.52 million	$1.29	29.91
Pebblebrook Hotel Trust	$1.48 billion	1.12	-$65.81 million	($0.80)	-18.26

Stag Industrial has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel Trust is trading at a lower price-to-earnings ratio than Stag Industrial, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

88.7% of Stag Industrial shares are held by institutional investors. 1.1% of Stag Industrial shares are held by company insiders. Comparatively, 3.7% of Pebblebrook Hotel Trust shares are held by company 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Stag Industrial and Pebblebrook Hotel Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stag Industrial	1	6	2	0	2.11
Pebblebrook Hotel Trust	4	7	1	2	2.07

Stag Industrial presently has a consensus price target of $39.78, indicating a potential upside of 3.11%. Pebblebrook Hotel Trust has a consensus price target of $13.40, indicating a potential downside of 8.27%. Given Stag Industrial’s stronger consensus rating and higher possible upside, analysts clearly believe Stag Industrial is more favorable than Pebblebrook Hotel Trust.

Profitability

This table compares Stag Industrial and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stag Industrial	28.25%	6.80%	3.47%
Pebblebrook Hotel Trust	-4.18%	-2.41%	-1.15%

Risk & Volatility

Stag Industrial has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Pebblebrook Hotel Trust has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Dividends

Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.0%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Stag Industrial pays out 120.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -5.0% of its earnings in the form of a dividend. Stag Industrial has increased its dividend for 7 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Stag Industrial beats Pebblebrook Hotel Trust on 13 of the 18 factors compared between the two stocks.

About Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.

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.