Chatham Lodging Trust (NYSE:CLDT – Get Free Report) and Granite Real Estate Inc. Staple (NYSE:GRP.U – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Dividends
Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.0%. Granite Real Estate Inc. Staple pays an annual dividend of $2.44 per share and has a dividend yield of 4.6%. Chatham Lodging Trust pays out -121.7% of its earnings in the form of a dividend. Granite Real Estate Inc. Staple pays out 68.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk & Volatility
Chatham Lodging Trust has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Granite Real Estate Inc. Staple has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chatham Lodging Trust | $311.11 million | 1.45 | $2.64 million | ($0.23) | -39.98 |
| Granite Real Estate Inc. Staple | $550.94 million | 6.10 | $101.24 million | $3.58 | 14.97 |
Granite Real Estate Inc. Staple has higher revenue and earnings than Chatham Lodging Trust. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than Granite Real Estate Inc. Staple, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Chatham Lodging Trust and Granite Real Estate Inc. Staple, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chatham Lodging Trust | 0 | 0 | 1 | 0 | 3.00 |
| Granite Real Estate Inc. Staple | 0 | 0 | 0 | 0 | 0.00 |
Chatham Lodging Trust currently has a consensus price target of $12.00, suggesting a potential upside of 30.51%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Chatham Lodging Trust is more favorable than Granite Real Estate Inc. Staple.
Profitability
This table compares Chatham Lodging Trust and Granite Real Estate Inc. Staple’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chatham Lodging Trust | -0.99% | -0.39% | -0.24% |
| Granite Real Estate Inc. Staple | 55.97% | 5.71% | 3.34% |
Insider and Institutional Ownership
88.4% of Chatham Lodging Trust shares are owned by institutional investors. Comparatively, 57.1% of Granite Real Estate Inc. Staple shares are owned by institutional investors. 6.5% of Chatham Lodging Trust shares are owned by insiders. Comparatively, 0.3% of Granite Real Estate Inc. Staple shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Summary
Granite Real Estate Inc. Staple beats Chatham Lodging Trust on 9 of the 16 factors compared between the two stocks.
About Chatham Lodging Trust
Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.
About Granite Real Estate Inc. Staple
Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.
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