Chesapeake Lodging Trust (NYSE: CHSP) and Hospitality Properties Trust (NASDAQ:HPT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.
This is a summary of recent recommendations and price targets for Chesapeake Lodging Trust and Hospitality Properties Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chesapeake Lodging Trust||1||5||1||0||2.00|
|Hospitality Properties Trust||1||3||4||0||2.38|
Volatility & Risk
Chesapeake Lodging Trust has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Hospitality Properties Trust has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.
Institutional & Insider Ownership
99.0% of Chesapeake Lodging Trust shares are owned by institutional investors. Comparatively, 75.2% of Hospitality Properties Trust shares are owned by institutional investors. 2.2% of Chesapeake Lodging Trust shares are owned by insiders. Comparatively, 1.6% of Hospitality Properties Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 6.0%. Hospitality Properties Trust pays an annual dividend of $2.08 per share and has a dividend yield of 7.8%. Chesapeake Lodging Trust pays out 144.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hospitality Properties Trust pays out 148.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Chesapeake Lodging Trust and Hospitality Properties Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chesapeake Lodging Trust||12.34%||6.67%||3.65%|
|Hospitality Properties Trust||11.66%||8.79%||3.58%|
Valuation & Earnings
This table compares Chesapeake Lodging Trust and Hospitality Properties Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chesapeake Lodging Trust||$598.27 million||2.68||$76.23 million||$1.11||23.95|
|Hospitality Properties Trust||$2.05 billion||2.14||$223.11 million||$1.40||19.00|
Hospitality Properties Trust has higher revenue and earnings than Chesapeake Lodging Trust. Hospitality Properties Trust is trading at a lower price-to-earnings ratio than Chesapeake Lodging Trust, indicating that it is currently the more affordable of the two stocks.
Chesapeake Lodging Trust Company Profile
Chesapeake Lodging Trust is a real estate investment trust. The Company is focused on investments primarily in upper-upscale hotels in various business and convention markets and, on a selective basis, select-service hotels in urban settings or other locations in the United States. The Company operates through the hotel ownership segment. The Company conducts its operations primarily though Chesapeake Lodging, L.P., its operating partnership (the Operating Partnership). As of February 17, 2017, the Company owned 22 hotels. As of February 17, 2017, the Company’s portfolio included Hyatt Regency Boston; Hilton Checkers Los Angeles; Boston Marriott Newton; Le Meridien San Francisco; Hotel Indigo San Diego Gaslamp Quarter; Courtyard Washington Capitol Hill/Navy Yard; Hotel Adagio San Francisco, Autograph Collection; Denver Marriott City Center; Hyatt Herald Square New York, and Ace Hotel and Theater Downtown Los Angeles. As of February 17, 2017, the Company’s hotels had 6,694 rooms.
Hospitality Properties Trust Company Profile
Hospitality Properties Trust is a real estate investment trust. The Company’s segments include hotel investments, travel center investments and corporate. As of December 31, 2016, the Company owned 306 hotels with 46,583 rooms or suites, and 198 travel centers. As of December 31, 2016, the Company’s properties were located in 45 states in the United States, Canada and Puerto Rico. As of December 31, 2016, the Company’s hotels were operated as Courtyard by Marriott, Royal Sonesta, Sonesta Hotels & Resorts, Candlewood Suites, Residence Inn by Marriott, Sonesta ES Suites, Crowne Plaza Hotels & Resorts, Staybridge Suites, Hyatt Place, Wyndham Grand, Wyndham Hotels & Resorts, InterContinental Hotels & Resorts, Marriott Hotels and Resorts, the Clift Hotel, Radisson Hotels & Resorts, Kimpton Hotels & Restaurants, TownePlace Suites by Marriott, Hawthorn Suites, Country Inns & Suites by Carlson, Holiday Inn Hotels & Resorts, SpringHill Suites by Marriott, and Park Plaza Hotels & Resorts.
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