Federal Realty Investment Trust (NYSE:FRT) vs. Chatham Lodging Trust (NYSE:CLDT) Financial Analysis

Federal Realty Investment Trust (NYSE:FRTGet Rating) and Chatham Lodging Trust (NYSE:CLDTGet Rating) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Institutional & Insider Ownership

84.4% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 87.8% of Chatham Lodging Trust shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by insiders. Comparatively, 5.2% of Chatham Lodging Trust shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Federal Realty Investment Trust and Chatham Lodging Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Realty Investment Trust 36.69% 14.52% 4.91%
Chatham Lodging Trust 0.23% 0.08% 0.05%

Risk & Volatility

Federal Realty Investment Trust has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Federal Realty Investment Trust and Chatham Lodging Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Realty Investment Trust 0 7 8 1 2.63
Chatham Lodging Trust 0 0 3 0 3.00

Federal Realty Investment Trust presently has a consensus price target of $121.13, suggesting a potential upside of 12.39%. Chatham Lodging Trust has a consensus price target of $17.50, suggesting a potential upside of 33.69%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Chatham Lodging Trust is more favorable than Federal Realty Investment Trust.

Earnings and Valuation

This table compares Federal Realty Investment Trust 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
Federal Realty Investment Trust $951.22 million 9.20 $261.50 million $4.71 22.88
Chatham Lodging Trust $203.98 million 3.13 -$18.41 million ($0.14) -93.49

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

Summary

Federal Realty Investment Trust beats Chatham Lodging Trust on 10 of the 15 factors compared between the two stocks.

About Federal Realty Investment Trust

(Get Rating)

Federal Realty is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as San Francisco and Los Angeles. Founded in 1962, Federal Realty's mission is to deliver long-term, sustainable growth through investing in communities where retail demand exceeds supply. Its expertise includes creating urban, mixed-use neighborhoods like Santana Row in San Jose, California, Pike & Rose in North Bethesda, Maryland and Assembly Row in Somerville, Massachusetts. These unique and vibrant environments that combine shopping, dining, living and working provide a destination experience valued by their respective communities. Federal Realty's 106 properties include approximately 3,100 tenants, in 25 million square feet, and approximately 3,200 residential units. Federal Realty has increased its quarterly dividends to its shareholders for 54 consecutive years, the longest record in the REIT industry. Federal Realty is an S&P 500 index member and its shares are traded on the NYSE under the symbol FRT. For additional information about Federal Realty and its properties, visit www.federalrealty.com.

About Chatham Lodging Trust

(Get Rating)

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. At September, 30, 2020, The company owns interests in 86 hotels totaling 12,040 rooms/suites, comprised of 40 properties it wholly owns with an aggregate of 6,092 rooms/suites in 15 states and the District of Columbia and a minority investment in the Innkeepers joint ventures that owns 46 hotels with an aggregate of 5,948 rooms/suites.

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