National Health Investors (NYSE:NHI) & Pebblebrook Hotel Trust (NYSE:PEB) Critical Comparison

National Health Investors (NYSE:NHI) and Pebblebrook Hotel Trust (NYSE:PEB) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Earnings & Valuation

This table compares National Health Investors and Pebblebrook Hotel Trust’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
National Health Investors	$326.05 million	10.72	$135.65 million	$3.05	26.39
Pebblebrook Hotel Trust	$1.44 billion	1.09	-$78.02 million	($1.02)	-12.76

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

Dividends

National Health Investors pays an annual dividend of $3.60 per share and has a dividend yield of 4.5%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. National Health Investors pays out 118.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -3.9% of its earnings in the form of a dividend.

Profitability

This table compares National Health Investors and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
National Health Investors	41.40%	10.41%	5.30%
Pebblebrook Hotel Trust	-6.75%	-3.40%	-1.67%

Risk & Volatility

National Health Investors has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for National Health Investors and Pebblebrook Hotel Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
National Health Investors	0	4	4	0	2.50
Pebblebrook Hotel Trust	2	5	0	0	1.71

National Health Investors presently has a consensus target price of $62.13, indicating a potential downside of 22.81%. Pebblebrook Hotel Trust has a consensus target price of $14.42, indicating a potential upside of 10.73%. Given Pebblebrook Hotel Trust’s higher possible upside, analysts plainly believe Pebblebrook Hotel Trust is more favorable than National Health Investors.

Insider and Institutional Ownership

62.5% of National Health Investors shares are owned by institutional investors. 7.3% of National Health Investors shares are owned by company insiders. Comparatively, 2.4% of Pebblebrook Hotel Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

National Health Investors beats Pebblebrook Hotel Trust on 12 of the 16 factors compared between the two stocks.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.

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.