CDL Hospitality Trusts (OTCMKTS:CDHSF – Get Rating) and Chatham Lodging Trust (NYSE:CLDT – Get Rating) are both real estate companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.
Dividends
CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 11.6%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. CDL Hospitality Trusts pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CDL Hospitality Trusts is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
16.5% of CDL Hospitality Trusts shares are owned by institutional investors. Comparatively, 92.7% of Chatham Lodging Trust shares are owned by institutional investors. 5.2% of Chatham Lodging Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CDL Hospitality Trusts | N/A | N/A | N/A | $0.13 | 7.41 |
| Chatham Lodging Trust | $294.85 million | 1.51 | $9.81 million | $0.14 | 64.93 |
Chatham Lodging Trust has higher revenue and earnings than CDL Hospitality Trusts. CDL Hospitality Trusts 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.
Analyst Ratings
This is a summary of current ratings and price targets for CDL Hospitality Trusts and Chatham Lodging Trust, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CDL Hospitality Trusts | 0 | 1 | 0 | 0 | 2.00 |
| Chatham Lodging Trust | 0 | 0 | 3 | 0 | 3.00 |
Chatham Lodging Trust has a consensus price target of $15.33, indicating a potential upside of 68.68%. Given Chatham Lodging Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Chatham Lodging Trust is more favorable than CDL Hospitality Trusts.
Profitability
This table compares CDL Hospitality Trusts and Chatham Lodging Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CDL Hospitality Trusts | N/A | N/A | N/A |
| Chatham Lodging Trust | 4.68% | 1.76% | 1.07% |
Summary
Chatham Lodging Trust beats CDL Hospitality Trusts on 11 of the 13 factors compared between the two stocks.
About CDL Hospitality Trusts
CDL Hospitality Trusts (CDLHT) is one of Asia's leading hospitality trusts with assets under management of about S$2.9 billion as at 31 December 2020. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.
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.
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