Head to Head Analysis: Chatham Lodging Trust (NYSE:CLDT) and Global Medical REIT (NYSE:XRN)

Chatham Lodging Trust (NYSE:CLDT) and Global Medical REIT (NYSE:XRN) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

Chatham Lodging Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Global Medical REIT pays an annual dividend of $3.00 per share and has a dividend yield of 8.5%. Chatham Lodging Trust pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Global Medical REIT pays out -270.3% of its earnings in the form of a dividend. Chatham Lodging Trust has raised its dividend for 2 consecutive years. Global Medical REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

88.4% of Chatham Lodging Trust shares are owned by institutional investors. Comparatively, 57.5% of Global Medical REIT shares are owned by institutional investors. 8.1% of Chatham Lodging Trust shares are owned by company insiders. Comparatively, 8.9% of Global Medical REIT shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Chatham Lodging Trust and Global Medical REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chatham Lodging Trust	$293.94 million	1.72	$15.05 million	$0.02	540.45
Global Medical REIT	$148.21 million	3.14	-$5.84 million	($1.11)	-31.70

Chatham Lodging Trust has higher revenue and earnings than Global Medical REIT. Global Medical REIT 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 breakdown of current ratings and price targets for Chatham Lodging Trust and Global Medical REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	1	1	2	0	2.25
Global Medical REIT	1	3	2	1	2.43

Chatham Lodging Trust currently has a consensus target price of $11.00, indicating a potential upside of 1.77%. Global Medical REIT has a consensus target price of $40.00, indicating a potential upside of 13.67%. Given Global Medical REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Global Medical REIT is more favorable than Chatham Lodging Trust.

Volatility & Risk

Chatham Lodging Trust has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Global Medical REIT has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chatham Lodging Trust	3.14%	1.18%	0.77%
Global Medical REIT	-6.06%	-2.19%	-0.73%

Summary

Chatham Lodging Trust beats Global Medical REIT on 9 of the 17 factors compared between the two stocks.

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.

About Global Medical REIT

Global Medical REIT Inc. (GMRE) is a net-lease medical office real estate investment trust (REIT) that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems.