Pebblebrook Hotel Trust (NYSE:PEB) and BXP (NYSE:BXP) Critical Analysis

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

Risk and Volatility

BXP has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BXP	$3.48 billion	3.09	$276.80 million	$1.99	33.85
Pebblebrook Hotel Trust	$1.48 billion	1.51	-$65.81 million	($0.80)	-24.60

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

Analyst Ratings

This is a summary of current recommendations and price targets for BXP and Pebblebrook Hotel Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BXP	0	9	11	0	2.55
Pebblebrook Hotel Trust	4	6	3	2	2.20

BXP currently has a consensus price target of $73.11, indicating a potential upside of 8.52%. Pebblebrook Hotel Trust has a consensus price target of $16.67, indicating a potential downside of 15.28%. Given BXP’s stronger consensus rating and higher probable upside, analysts plainly believe BXP is more favorable than Pebblebrook Hotel Trust.

Dividends

BXP pays an annual dividend of $2.80 per share and has a dividend yield of 4.2%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. BXP pays out 140.7% 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 -5.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

98.7% of BXP shares are owned by institutional investors. 1.5% of BXP shares are owned by insiders. Comparatively, 3.7% of Pebblebrook Hotel Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BXP	9.09%	4.13%	1.23%
Pebblebrook Hotel Trust	-4.18%	-2.41%	-1.15%

Summary

BXP beats Pebblebrook Hotel Trust on 13 of the 17 factors compared between the two stocks.

About BXP

Boston Properties, Inc. (NYSE: BXP) (BXP or the Company) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets – Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP's portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP's properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its inhouse building management expertise and responsiveness to clients' needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned a twelfth consecutive GRESB Green Star recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

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.