Chatham Lodging Trust (REIT) (NYSE: CLDT) and Gaming and Leisure Properties (NASDAQ:GLPIV) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Chatham Lodging Trust (REIT) and Gaming and Leisure Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chatham Lodging Trust (REIT) 0 5 1 0 2.17
Gaming and Leisure Properties 0 0 0 0 N/A

Chatham Lodging Trust (REIT) currently has a consensus target price of $20.10, suggesting a potential downside of 4.24%. Given Chatham Lodging Trust (REIT)’s higher possible upside, research analysts plainly believe Chatham Lodging Trust (REIT) is more favorable than Gaming and Leisure Properties.

Dividends

Chatham Lodging Trust (REIT) pays an annual dividend of $1.32 per share and has a dividend yield of 6.3%. Gaming and Leisure Properties does not pay a dividend. Chatham Lodging Trust (REIT) pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust (REIT) has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Chatham Lodging Trust (REIT) and Gaming and Leisure Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chatham Lodging Trust (REIT) $290.53 million 2.83 $106.69 million $0.66 31.80
Gaming and Leisure Properties N/A N/A N/A N/A N/A

Chatham Lodging Trust (REIT) has higher revenue and earnings than Gaming and Leisure Properties.

Institutional and Insider Ownership

83.1% of Chatham Lodging Trust (REIT) shares are owned by institutional investors. 3.6% of Chatham Lodging Trust (REIT) shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Chatham Lodging Trust (REIT) and Gaming and Leisure Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chatham Lodging Trust (REIT) 8.73% 3.76% 1.97%
Gaming and Leisure Properties 39.58% 15.66% 5.27%

Summary

Chatham Lodging Trust (REIT) beats Gaming and Leisure Properties on 7 of the 11 factors compared between the two stocks.

Chatham Lodging Trust (REIT) 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). As of December 31, 2016, the Company owned 38 hotels with an aggregate of 5,712 rooms located in 15 states and the District of Columbia. As of December 31, 2016, 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).

Gaming and Leisure Properties Company Profile

Gaming and Leisure Properties, Inc. (GLPI) is a self-administered and self-managed Pennsylvania real estate investment trust (REIT). The Company is engaged in the business of acquiring, financing and owning real estate property to be leased to gaming operators in triple net lease arrangements. Its segments include GLP Capital, L.P. (GLP Capital), through which the Company owns all of its real estate assets, and the TRS Properties, which consists of Hollywood Casino Perryville and Hollywood Casino Baton Rouge. The GLP Capital segment consists of the leased real property. As of December 31, 2016, the Company had 34 rental properties, consisting of the real property associated with 18 gaming and related facilities operated by Penn National Gaming, Inc. (Penn), the real property associated with 15 gaming and related facilities operated by Pinnacle Entertainment, Inc. (Pinnacle), and the real property associated with the Casino Queen in East St. Louis, Illinois.

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