Getty Realty (NYSE:GTY) and Pebblebrook Hotel Trust (NYSE:PEB) Head to Head Analysis

Pebblebrook Hotel Trust (NYSE:PEB) and Getty Realty (NYSE:GTY) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Profitability

This table compares Pebblebrook Hotel Trust and Getty Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	-7.45%	-4.02%	-1.93%
Getty Realty	34.76%	7.60%	3.72%

Insider and Institutional Ownership

85.1% of Getty Realty shares are held by institutional investors. 3.1% of Pebblebrook Hotel Trust shares are held by company insiders. Comparatively, 8.8% of Getty Realty shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pebblebrook Hotel Trust and Getty Realty, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	5	5	2	0	1.75
Getty Realty	0	3	2	0	2.40

Pebblebrook Hotel Trust currently has a consensus price target of $11.91, indicating a potential downside of 3.49%. Getty Realty has a consensus price target of $31.25, indicating a potential upside of 10.99%. Given Getty Realty’s stronger consensus rating and higher possible upside, analysts clearly believe Getty Realty is more favorable than Pebblebrook Hotel Trust.

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Getty Realty pays an annual dividend of $1.94 per share and has a dividend yield of 6.9%. Pebblebrook Hotel Trust pays out -3.4% of its earnings in the form of a dividend. Getty Realty pays out 151.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Getty Realty has raised its dividend for 1 consecutive years. Getty Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Pebblebrook Hotel Trust and Getty Realty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.45 billion	0.96	-$4.24 million	($1.19)	-10.37
Getty Realty	$214.19 million	7.59	$71.06 million	$1.28	22.00

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

Volatility and Risk

Pebblebrook Hotel Trust has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Getty Realty has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Summary

Getty Realty beats Pebblebrook Hotel Trust on 13 of the 16 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 Getty Realty

Getty Realty Corp. is a publicly traded, net lease REIT specializing in the acquisition, financing and development of convenience, automotive and other single tenant retail real estate. As of December 31, 2023, the Company’s portfolio included 1,093 freestanding properties located in 40 states across the United States and Washington, D.C.