BRAEMAR HOTELS & RESORTS (NYSE:BHR) vs. Chatham Lodging Trust (NYSE:CLDT) Head-To-Head Review

Chatham Lodging Trust (NYSE:CLDT) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) are both small-cap real estate companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.

Profitability

This table compares Chatham Lodging Trust and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chatham Lodging Trust	4.00%	1.56%	1.00%
BRAEMAR HOTELS & RESORTS	-0.45%	-1.87%	-0.16%

Risk and Volatility

Chatham Lodging Trust has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, BRAEMAR HOTELS & RESORTS has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Chatham Lodging Trust and BRAEMAR HOTELS & RESORTS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	2	2	1	2.80
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67

Chatham Lodging Trust presently has a consensus target price of $13.00, suggesting a potential upside of 3.22%. BRAEMAR HOTELS & RESORTS has a consensus target price of $2.50, suggesting a potential upside of 20.48%. Given BRAEMAR HOTELS & RESORTS’s higher possible upside, analysts plainly believe BRAEMAR HOTELS & RESORTS is more favorable than Chatham Lodging Trust.

Dividends

Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.2%. BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 9.6%. Chatham Lodging Trust pays out 500.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRAEMAR HOTELS & RESORTS pays out -27.4% of its earnings in the form of a dividend. Chatham Lodging Trust has increased its dividend for 2 consecutive years. BRAEMAR HOTELS & RESORTS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

88.4% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. 8.1% of Chatham Lodging Trust shares are held by company insiders. Comparatively, 8.2% of BRAEMAR HOTELS & RESORTS shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Chatham Lodging Trust and BRAEMAR HOTELS & RESORTS”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chatham Lodging Trust	$295.08 million	1.99	$15.05 million	$0.08	157.44
BRAEMAR HOTELS & RESORTS	$689.13 million	0.21	-$22.32 million	($0.73)	-2.84

Chatham Lodging Trust has higher earnings, but lower revenue than BRAEMAR HOTELS & RESORTS. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Chatham Lodging Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Chatham Lodging Trust beats BRAEMAR HOTELS & RESORTS on 13 of the 18 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 BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).