Pebblebrook Hotel Trust (NYSE:PEB) & Healthcare Realty Trust (NYSE:HR) Head-To-Head Contrast

Healthcare Realty Trust (NYSE:HR) and Pebblebrook Hotel Trust (NYSE:PEB) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Dividends

Healthcare Realty Trust pays an annual dividend of $0.96 per share and has a dividend yield of 4.5%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Healthcare Realty Trust pays out -165.5% of its earnings in the form of a dividend. Pebblebrook Hotel Trust pays out -5.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Healthcare Realty Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Healthcare Realty Trust has a beta of 0.98, meaning that its stock price is 2% less 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.

Valuation and Earnings

This table compares Healthcare Realty Trust and Pebblebrook Hotel Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Healthcare Realty Trust	$1.18 billion	6.29	-$246.07 million	($0.58)	-36.96
Pebblebrook Hotel Trust	$1.48 billion	1.47	-$65.81 million	($0.80)	-23.87

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Healthcare Realty Trust	-17.34%	-4.29%	-2.09%
Pebblebrook Hotel Trust	-4.18%	-2.41%	-1.15%

Analyst Recommendations

This is a summary of current recommendations for Healthcare Realty Trust and Pebblebrook Hotel Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Healthcare Realty Trust	1	5	4	0	2.30
Pebblebrook Hotel Trust	4	6	3	2	2.20

Healthcare Realty Trust presently has a consensus price target of $21.67, indicating a potential upside of 1.06%. Pebblebrook Hotel Trust has a consensus price target of $16.90, indicating a potential downside of 11.48%. Given Healthcare Realty Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Healthcare Realty Trust is more favorable than Pebblebrook Hotel Trust.

Summary

Pebblebrook Hotel Trust beats Healthcare Realty Trust on 8 of the 15 factors compared between the two stocks.

About Healthcare Realty Trust

Healthcare Realty Trust, Inc. provides real estate investment services. It owns, leases, manages, acquires, finances, develops, and redevelops income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States of America. The company was founded by David R. Emery in 1992 and is headquartered in Nashville, TN.

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.