BRAEMAR HOTELS & RESORTS (NYSE:BHR) & Chatham Lodging Trust (NYSE:CLDT) Financial Analysis

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 businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Chatham Lodging Trust and BRAEMAR HOTELS & RESORTS, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	3	2	0	2.40
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67

Chatham Lodging Trust currently has a consensus price target of $13.00, suggesting a potential upside of 0.39%. BRAEMAR HOTELS & RESORTS has a consensus price target of $2.50, suggesting a potential upside of 21.36%. Given BRAEMAR HOTELS & RESORTS’s higher probable upside, analysts plainly believe BRAEMAR HOTELS & RESORTS is more favorable than Chatham Lodging Trust.

Volatility & Risk

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

Valuation & Earnings

This table compares Chatham Lodging Trust and BRAEMAR HOTELS & RESORTS”s 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	2.05	$15.05 million	$0.08	161.88
BRAEMAR HOTELS & RESORTS	$689.13 million	0.21	-$22.32 million	($0.73)	-2.82

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.

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

Dividends

Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.1%. BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 9.7%. 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.

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%	-1.92%	-0.17%

Summary

Chatham Lodging Trust beats BRAEMAR HOTELS & RESORTS on 12 of the 17 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).