Analyzing Park Hotels & Resorts (PK) and Chatham Lodging Trust (CLDT)

Chatham Lodging Trust (NYSE: CLDT) and Park Hotels & Resorts (NYSE:PK) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Dividends

Chatham Lodging Trust pays an annual dividend of $1.32 per share and has a dividend yield of 6.4%. Park Hotels & Resorts pays an annual dividend of $2.20 per share and has a dividend yield of 8.2%. Chatham Lodging Trust pays out 194.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Park Hotels & Resorts pays out 18.3% of its earnings in the form of a dividend. Park Hotels & Resorts has increased its dividend for 3 consecutive years. Park Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Chatham Lodging Trust and Park Hotels & Resorts, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chatham Lodging Trust 0 6 1 0 2.14
Park Hotels & Resorts 0 6 8 0 2.57

Chatham Lodging Trust currently has a consensus price target of $20.70, indicating a potential downside of 0.05%. Park Hotels & Resorts has a consensus price target of $36.64, indicating a potential upside of 35.79%. Given Park Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Park Hotels & Resorts is more favorable than Chatham Lodging Trust.

Insider and Institutional Ownership

77.2% of Chatham Lodging Trust shares are owned by institutional investors. Comparatively, 99.6% of Park Hotels & Resorts shares are owned by institutional investors. 3.6% of Chatham Lodging Trust shares are owned by company insiders. Comparatively, 0.3% of Park Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Chatham Lodging Trust and Park Hotels & Resorts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chatham Lodging Trust 9.03% 3.90% 2.04%
Park Hotels & Resorts 93.04% 46.66% 25.91%

Earnings and Valuation

This table compares Chatham Lodging Trust and Park Hotels & Resorts’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chatham Lodging Trust $293.82 million 3.20 $31.48 million $0.68 30.46
Park Hotels & Resorts $2.73 billion 2.13 $133.00 million $12.01 2.25

Park Hotels & Resorts has higher revenue and earnings than Chatham Lodging Trust. Park Hotels & Resorts 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.

Summary

Park Hotels & Resorts beats Chatham Lodging Trust on 13 of the 16 factors compared between the two stocks.

About Chatham Lodging Trust

Chatham Lodging Trust is a real estate investment trust. The Company invests primarily in upscale extended-stay and premium-branded select-service hotels. All of the Company’s assets are held by, and all of its operations are conducted through Chatham Lodging, L.P. (the Operating Partnership). The Company owned 40 hotels with an aggregate of 5,939 rooms located in 16 states and the District of Columbia. The Company’s hotels included upscale extended-stay hotels that operate under the Residence Inn by Marriott brand (15 hotels) and Homewood Suites by Hilton brand (nine hotels), as well as premium-branded select-service hotels that operate under the Courtyard by Marriott brand (four hotels), the Hampton Inn or Hampton Inn and Suites by Hilton brand (three hotels), the Hilton Garden Inn by Hilton brand (three hotels), the SpringHill Suites by Marriott brand (two hotels) and the Hyatt Place brand (two hotels).

About Park Hotels & Resorts

Park Hotels & Resorts Inc. is a lodging real estate company. The Company has a portfolio of hotels and resorts. The Company operates through ownership segment, which includes all of its hotel properties. As of December 31, 2016, the Company’s portfolio consisted of 67 hotels and resorts with over 35,000 rooms located in the United States and international markets. Its portfolio includes hotels in areas, such as New York City, Washington, D.C., Chicago, San Francisco and London; resorts in leisure destinations, including Hawaii, Orlando and Key West, and a range of properties adjacent to gateway airports, such as Los Angeles International, Chicago O’Hare, Boston Logan and Miami Airport, and select suburban locations. The Company’s brand affiliations include Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Hotels & Resorts, Hilaton Garden Inn, Curio – A Collection by Hilton, and Waldorf Astoria Hotels & Resorts.

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