CTO Realty Growth (NYSE:CTO – Get Free Report) and Pebblebrook Hotel Trust (NYSE:PEB – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Profitability
This table compares CTO Realty Growth and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CTO Realty Growth | -22.77% | -5.72% | -2.74% |
| Pebblebrook Hotel Trust | -7.45% | -4.02% | -1.93% |
Analyst Recommendations
This is a breakdown of current ratings for CTO Realty Growth and Pebblebrook Hotel Trust, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CTO Realty Growth | 1 | 1 | 2 | 1 | 2.60 |
| Pebblebrook Hotel Trust | 5 | 6 | 2 | 1 | 1.93 |
Dividends
CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 8.2%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. CTO Realty Growth pays out -117.8% of its earnings in the form of a dividend. Pebblebrook Hotel Trust pays out -3.4% 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. CTO Realty Growth is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
67.2% of CTO Realty Growth shares are held by institutional investors. 4.0% of CTO Realty Growth shares are held by company insiders. Comparatively, 3.1% of Pebblebrook Hotel Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
CTO Realty Growth has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Earnings & Valuation
This table compares CTO Realty Growth and Pebblebrook Hotel Trust”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CTO Realty Growth | $124.52 million | 4.79 | -$1.97 million | ($1.29) | -14.30 |
| Pebblebrook Hotel Trust | $1.45 billion | 0.96 | -$4.24 million | ($1.19) | -10.32 |
CTO Realty Growth has higher earnings, but lower revenue than Pebblebrook Hotel Trust. CTO Realty Growth is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
Summary
CTO Realty Growth beats Pebblebrook Hotel Trust on 8 of the 15 factors compared between the two stocks.
About CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust ("REIT") and the largest owner of urban and resort lifestyle hotels and resorts in the United States. The Company owns 47 hotels and resorts, totaling approximately 12,200 guest rooms across 13 urban and resort markets.
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