Analyzing Chatham Lodging Trust (NYSE:CLDT) & Brandywine Realty Trust (NYSE:BDN)

Brandywine Realty Trust (NYSE:BDN) and Chatham Lodging Trust (NYSE:CLDT) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

87.3% of Brandywine Realty Trust shares are owned by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are owned by institutional investors. 2.6% of Brandywine Realty Trust shares are owned by insiders. Comparatively, 6.5% of Chatham Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Brandywine Realty Trust pays an annual dividend of $0.60 per share and has a dividend yield of 11.2%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.4%. Brandywine Realty Trust pays out -49.2% of its earnings in the form of a dividend. Chatham Lodging Trust pays out -233.3% 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.

Analyst Ratings

This is a summary of recent ratings and price targets for Brandywine Realty Trust and Chatham Lodging Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brandywine Realty Trust	0	2	1	0	2.33
Chatham Lodging Trust	0	0	1	0	3.00

Brandywine Realty Trust presently has a consensus target price of $5.67, suggesting a potential upside of 5.72%. Chatham Lodging Trust has a consensus target price of $12.00, suggesting a potential upside of 43.71%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Chatham Lodging Trust is more favorable than Brandywine Realty Trust.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brandywine Realty Trust	$511.37 million	1.81	-$196.79 million	($1.22)	-4.39
Chatham Lodging Trust	$311.11 million	1.31	$2.64 million	($0.12)	-69.58

Chatham Lodging Trust has lower revenue, but higher earnings than Brandywine Realty Trust. Chatham Lodging Trust is trading at a lower price-to-earnings ratio than Brandywine Realty Trust, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Brandywine Realty Trust	-32.27%	-12.16%	-4.36%
Chatham Lodging Trust	-0.01%	N/A	N/A

Risk & Volatility

Brandywine Realty Trust has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.

Summary

Chatham Lodging Trust beats Brandywine Realty Trust on 11 of the 15 factors compared between the two stocks.

About Brandywine Realty Trust

Brandywine Realty Trust (NYSE: BDN) is one of the largest, publicly traded, full-service, integrated real estate companies in the United States with a core focus in the Philadelphia and Austin markets. Organized as a real estate investment trust (REIT), we own, develop, lease and manage an urban, town center and transit-oriented portfolio comprising 160 properties and 22.6 million square feet as of September 30, 2023 which excludes assets held for sale. Our purpose is to shape, connect and inspire the world around us through our expertise, the relationships we foster, the communities in which we live and work, and the history we build together.

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.