Hospitality Properties Trust (NASDAQ: HPT) and Pebblebrook Hotel Trust (NYSE:PEB) are both mid-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.0%. Pebblebrook Hotel Trust pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. Hospitality Properties Trust pays out 148.6% 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 117.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hospitality Properties Trust has raised its dividend for 4 consecutive years. Hospitality Properties Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and recommmendations for Hospitality Properties Trust and Pebblebrook Hotel Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hospitality Properties Trust||0||3||4||0||2.57|
|Pebblebrook Hotel Trust||2||3||5||0||2.30|
Hospitality Properties Trust presently has a consensus target price of $32.20, suggesting a potential upside of 9.12%. Pebblebrook Hotel Trust has a consensus target price of $35.31, suggesting a potential downside of 2.40%. Given Hospitality Properties Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hospitality Properties Trust is more favorable than Pebblebrook Hotel Trust.
Valuation and Earnings
This table compares Hospitality Properties Trust and Pebblebrook Hotel Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Hospitality Properties Trust||$2.05 billion||2.37||$223.11 million||$1.40||21.08|
|Pebblebrook Hotel Trust||$816.42 million||3.06||$73.70 million||$1.29||28.05|
Hospitality Properties Trust has higher revenue and earnings than Pebblebrook Hotel Trust. Hospitality Properties Trust is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
76.0% of Hospitality Properties Trust shares are held by institutional investors. 1.7% of Hospitality Properties Trust shares are held by insiders. Comparatively, 2.0% of Pebblebrook Hotel Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Hospitality Properties Trust and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hospitality Properties Trust||11.66%||8.79%||3.58%|
|Pebblebrook Hotel Trust||12.98%||6.63%||3.78%|
Volatility and Risk
Hospitality Properties Trust has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Hospitality Properties Trust beats Pebblebrook Hotel Trust on 9 of the 17 factors compared between the two stocks.
Hospitality Properties Trust Company Profile
Hospitality Properties Trust is a real estate investment trust. The Company’s segments include hotel investments, travel center investments and corporate. As of December 31, 2016, the Company owned 306 hotels with 46,583 rooms or suites, and 198 travel centers. As of December 31, 2016, the Company’s properties were located in 45 states in the United States, Canada and Puerto Rico. As of December 31, 2016, the Company’s hotels were operated as Courtyard by Marriott, Royal Sonesta, Sonesta Hotels & Resorts, Candlewood Suites, Residence Inn by Marriott, Sonesta ES Suites, Crowne Plaza Hotels & Resorts, Staybridge Suites, Hyatt Place, Wyndham Grand, Wyndham Hotels & Resorts, InterContinental Hotels & Resorts, Marriott Hotels and Resorts, the Clift Hotel, Radisson Hotels & Resorts, Kimpton Hotels & Restaurants, TownePlace Suites by Marriott, Hawthorn Suites, Country Inns & Suites by Carlson, Holiday Inn Hotels & Resorts, SpringHill Suites by Marriott, and Park Plaza Hotels & Resorts.
Pebblebrook Hotel Trust Company Profile
Pebblebrook Hotel Trust is an internally managed hotel investment company. The Company is a real estate investment trust (REIT) that acquires and invests in hotel properties located primarily in cities of the United States. As of December 31, 2016, the Company owned 29 hotels with a total of 7,219 guest rooms. The hotels are located in the markets: Atlanta (Buckhead), Georgia; Boston, Massachusetts; Miami (Coral Gables), Florida; Minneapolis, Minnesota; Naples, Florida; Nashville, Tennessee; New York, New York; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Monica, California; Seattle, Washington; Stevenson, Washington; Washington, D.C.; West Hollywood, California, and Los Angeles (Beverly Hills), California. The Company’s assets are held by, and all of the operations are conducted through, Pebblebrook Hotel, L.P. (the Operating Partnership).
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