Chatham Lodging Trust (NYSE:CLDT) versus City Office REIT (NYSE:CIO) Head-To-Head Survey

City Office REIT (NYSE:CIO) and Chatham Lodging Trust (NYSE:CLDT) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Volatility and Risk

City Office REIT has a beta of 1.97, suggesting that its stock price is 97% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Profitability

This table compares City Office REIT and Chatham Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City Office REIT	-5.56%	-1.48%	-0.65%
Chatham Lodging Trust	-0.99%	-0.39%	-0.24%

Analyst Recommendations

This is a breakdown of current ratings and price targets for City Office REIT and Chatham Lodging Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City Office REIT	0	0	0	0	0.00
Chatham Lodging Trust	0	0	1	0	3.00

Chatham Lodging Trust has a consensus price target of $12.00, suggesting a potential upside of 37.38%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Chatham Lodging Trust is more favorable than City Office REIT.

Insider & Institutional Ownership

67.5% of City Office REIT shares are owned by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are owned by institutional investors. 3.9% of City Office REIT shares are owned by insiders. Comparatively, 6.5% of Chatham Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

City Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 8.3%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.2%. City Office REIT pays out -95.2% of its earnings in the form of a dividend. Chatham Lodging Trust pays out -121.7% 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.

Earnings and Valuation

This table compares City Office REIT and Chatham Lodging Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City Office REIT	$173.53 million	1.12	-$2.68 million	($0.42)	-11.48
Chatham Lodging Trust	$314.38 million	1.36	$2.64 million	($0.23)	-37.98

Chatham Lodging Trust has higher revenue and earnings than City Office REIT. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than City Office REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Chatham Lodging Trust beats City Office REIT on 13 of the 16 factors compared between the two stocks.

About City Office REIT

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.7 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

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.