Financial Contrast: Pebblebrook Hotel Trust (NYSE:PEB) & Stag Industrial (NYSE:STAG)

Pebblebrook Hotel Trust (NYSE:PEB) and Stag Industrial (NYSE:STAG) 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, earnings, institutional ownership, valuation, dividends and profitability.

Volatility and Risk

Pebblebrook Hotel Trust has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Stag Industrial has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

Institutional & Insider Ownership

88.7% of Stag Industrial shares are owned by institutional investors. 3.1% of Pebblebrook Hotel Trust shares are owned by insiders. Comparatively, 1.1% of Stag Industrial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	-5.18%	-2.88%	-1.38%
Stag Industrial	32.35%	7.68%	3.94%

Valuation and Earnings

This table compares Pebblebrook Hotel Trust and Stag Industrial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.48 billion	1.09	-$65.81 million	($0.91)	-15.63
Stag Industrial	$845.18 million	8.69	$273.52 million	$1.46	26.32

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

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Stag Industrial pays an annual dividend of $1.55 per share and has a dividend yield of 4.0%. Pebblebrook Hotel Trust pays out -4.4% of its earnings in the form of a dividend. Stag Industrial pays out 106.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Stag Industrial has raised its dividend for 7 consecutive years. Stag Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pebblebrook Hotel Trust and Stag Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	5	6	1	2	2.00
Stag Industrial	1	6	3	0	2.20

Pebblebrook Hotel Trust presently has a consensus price target of $12.73, suggesting a potential downside of 10.48%. Stag Industrial has a consensus price target of $39.70, suggesting a potential upside of 3.30%. Given Stag Industrial’s stronger consensus rating and higher probable upside, analysts plainly believe Stag Industrial is more favorable than Pebblebrook Hotel Trust.

Summary

Stag Industrial beats Pebblebrook Hotel Trust on 13 of the 18 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 Stag Industrial

STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.