Contrasting Chatham Lodging Trust (NYSE:CLDT) and Ventas (NYSE:VTR)

Ventas (NYSE:VTR) and Chatham Lodging Trust (NYSE:CLDT) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ventas	3.61%	1.75%	0.74%
Chatham Lodging Trust	3.04%	1.19%	0.76%

Dividends

Ventas pays an annual dividend of $1.92 per share and has a dividend yield of 2.8%. Chatham Lodging Trust pays an annual dividend of $0.36 per share and has a dividend yield of 5.0%. Ventas pays out 446.5% 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 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ventas has increased its dividend for 1 consecutive years and Chatham Lodging Trust has increased its dividend for 2 consecutive years. Chatham Lodging Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Ventas has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500.

Earnings & Valuation

This table compares Ventas and Chatham Lodging Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ventas	$4.92 billion	6.27	$81.15 million	$0.43	158.02
Chatham Lodging Trust	$317.21 million	1.12	$4.17 million	$0.03	241.90

Ventas has higher revenue and earnings than Chatham Lodging Trust. Ventas 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.

Institutional & Insider Ownership

94.2% of Ventas shares are held by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are held by institutional investors. 1.0% of Ventas shares are held by company insiders. Comparatively, 7.1% of Chatham Lodging Trust shares are held by company 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.

Analyst Ratings

This is a summary of current ratings for Ventas and Chatham Lodging Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ventas	0	2	8	1	2.91
Chatham Lodging Trust	0	0	2	0	3.00

Ventas presently has a consensus price target of $73.40, indicating a potential upside of 8.02%. Chatham Lodging Trust has a consensus price target of $10.75, indicating a potential upside of 48.13%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Chatham Lodging Trust is more favorable than Ventas.

Summary

Ventas beats Chatham Lodging Trust on 10 of the 18 factors compared between the two stocks.

About Ventas

Ventas Inc. (NYSE: VTR) is a leading S&P 500 real estate investment trust focused on delivering strong, sustainable shareholder returns by enabling exceptional environments that benefit a large and growing aging population. The Company's growth is fueled by its senior housing communities, which provide valuable services to residents and enable them to thrive in supported environments. Ventas leverages its unmatched operational expertise, data-driven insights from its Ventas Operational InsightsTM platform, extensive relationships and strong financial position to achieve its goal of delivering outsized performance across approximately 1,400 properties. The Ventas portfolio is composed of senior housing communities, outpatient medical buildings, research centers and healthcare facilities in North America and the United Kingdom. The Company benefits from a seasoned team of talented professionals who share a commitment to excellence, integrity and a common purpose of helping people live longer, healthier, happier lives.

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.