Chesapeake Lodging Trust (NYSE: CHSP) and Strategic Hotels and Resorts (NYSE:BEE) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Institutional and Insider Ownership
95.9% of Chesapeake Lodging Trust shares are owned by institutional investors. 2.5% of Chesapeake Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Chesapeake Lodging Trust and Strategic Hotels and Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Lodging Trust||12.34%||6.67%||3.65%|
|Strategic Hotels and Resorts||6.40%||5.76%||2.43%|
This is a summary of current recommendations and price targets for Chesapeake Lodging Trust and Strategic Hotels and Resorts, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Lodging Trust||1||5||1||0||2.00|
|Strategic Hotels and Resorts||0||0||0||0||N/A|
Chesapeake Lodging Trust currently has a consensus price target of $25.86, suggesting a potential downside of 4.81%.
Valuation and Earnings
This table compares Chesapeake Lodging Trust and Strategic Hotels and Resorts’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Lodging Trust||$598.27 million||2.74||$76.23 million||$1.11||24.48|
|Strategic Hotels and Resorts||N/A||N/A||N/A||$0.17||N/A|
Chesapeake Lodging Trust has higher revenue and earnings than Strategic Hotels and Resorts. Strategic Hotels and Resorts is trading at a lower price-to-earnings ratio than Chesapeake Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.9%. Strategic Hotels and Resorts does not pay a dividend. Chesapeake Lodging Trust pays out 144.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Chesapeake Lodging Trust beats Strategic Hotels and Resorts on 9 of the 10 factors compared between the two stocks.
Chesapeake Lodging Trust Company Profile
Chesapeake Lodging Trust is a real estate investment trust. The Company is focused on investments primarily in upper-upscale hotels in various business and convention markets and, on a selective basis, select-service hotels in urban settings or other locations in the United States. The Company operates through the hotel ownership segment. The Company conducts its operations primarily though Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). As of February 17, 2017, the Company owned 22 hotels. As of February 17, 2017, the Company’s portfolio included Hyatt Regency Boston; Hilton Checkers Los Angeles; Boston Marriott Newton; Le Meridien San Francisco; Hotel Indigo San Diego Gaslamp Quarter; Courtyard Washington Capitol Hill/Navy Yard; Hotel Adagio San Francisco, Autograph Collection; Denver Marriott City Center; Hyatt Herald Square New York, and Ace Hotel and Theater Downtown Los Angeles. As of February 17, 2017, the Company’s hotels had 6,694 rooms.
Strategic Hotels and Resorts Company Profile
Strategic Hotels & Resorts, Inc. (SHR) is a self-administered and self-managed real estate investment trust (REIT). The Company acquires and asset manages hotels. The Company owns land held for development including 50.7 acres of oceanfront land in Nayarit, Mexico; 13.8 acres of land in Scottsdale, Arizona adjacent to its Four Seasons Resort Scottsdale at Troon North, and a 20,000 square-foot oceanfront land parcel in Santa Monica, California adjacent to its Loews Santa Monica Beach Hotel. The Company’s hotels are operated under the brands of Fairmont, Four Seasons, Hyatt, InterContinental, JW Marriott, Loews, Marriott, Montage, Ritz-Carlton and Westin. The Hotel del Coronado is operated by a specialty management company, KSL Resorts.
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