Head-To-Head Comparison: Chatham Lodging Trust (NYSE:CLDT) & Granite Real Estate Inc. Staple (NYSE:GRP.U)

Granite Real Estate Inc. Staple (NYSE:GRP.U) and Chatham Lodging Trust (NYSE:CLDT) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Institutional & Insider Ownership

57.1% of Granite Real Estate Inc. Staple shares are held by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are held by institutional investors. 0.3% of Granite Real Estate Inc. Staple shares are held by insiders. Comparatively, 6.5% of Chatham Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Granite Real Estate Inc. Staple pays an annual dividend of $2.44 per share and has a dividend yield of 4.7%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. Granite Real Estate Inc. Staple pays out 68.2% 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.

Valuation & Earnings

This table compares Granite Real Estate Inc. Staple and Chatham Lodging Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Real Estate Inc. Staple	$386.07 million	8.51	$101.24 million	$3.58	14.63
Chatham Lodging Trust	$314.38 million	1.51	$2.64 million	($0.23)	-42.26

Granite Real Estate Inc. Staple has higher revenue and earnings than Chatham Lodging Trust. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than Granite Real Estate Inc. Staple, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Granite Real Estate Inc. Staple and Chatham Lodging Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Real Estate Inc. Staple	0	0	0	0	0.00
Chatham Lodging Trust	0	0	1	0	3.00

Chatham Lodging Trust has a consensus target price of $12.00, indicating a potential upside of 23.46%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Chatham Lodging Trust is more favorable than Granite Real Estate Inc. Staple.

Profitability

This table compares Granite Real Estate Inc. Staple and Chatham Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Real Estate Inc. Staple	55.97%	5.71%	3.34%
Chatham Lodging Trust	-0.99%	-0.39%	-0.24%

Summary

Granite Real Estate Inc. Staple beats Chatham Lodging Trust on 9 of the 15 factors compared between the two stocks.

About Granite Real Estate Inc. Staple

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.

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.