Critical Survey: Pebblebrook Hotel Trust (NYSE:PEB) versus Net Lease Office Properties (NYSE:NLOP)

Pebblebrook Hotel Trust (NYSE:PEB) and Net Lease Office Properties (NYSE:NLOP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Risk & Volatility

Pebblebrook Hotel Trust has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, Net Lease Office Properties has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Pebblebrook Hotel Trust and Net Lease Office Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	4	7	3	1	2.07
Net Lease Office Properties	1	0	0	0	1.00

Pebblebrook Hotel Trust presently has a consensus target price of $14.98, indicating a potential downside of 18.91%. Given Pebblebrook Hotel Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Pebblebrook Hotel Trust is more favorable than Net Lease Office Properties.

Profitability

This table compares Pebblebrook Hotel Trust and Net Lease Office Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	-4.18%	-2.41%	-1.15%
Net Lease Office Properties	-122.31%	-34.26%	-25.39%

Earnings and Valuation

This table compares Pebblebrook Hotel Trust and Net Lease Office Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.48 billion	1.42	-$65.81 million	($0.80)	-23.09
Net Lease Office Properties	$118.92 million	1.45	-$145.26 million	($8.14)	-1.43

Pebblebrook Hotel Trust has higher revenue and earnings than Net Lease Office Properties. Pebblebrook Hotel Trust is trading at a lower price-to-earnings ratio than Net Lease Office Properties, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.3% of Net Lease Office Properties shares are owned by institutional investors. 3.7% of Pebblebrook Hotel Trust shares are owned by company insiders. Comparatively, 0.7% of Net Lease Office Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Pebblebrook Hotel Trust beats Net Lease Office Properties on 12 of the 15 factors compared between the two stocks.

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.

About Net Lease Office Properties

Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.