Head to Head Analysis: Pebblebrook Hotel Trust (NYSE:PEB) versus NNN REIT (NYSE:NNN)

NNN REIT (NYSE:NNN) and Pebblebrook Hotel Trust (NYSE:PEB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, analyst recommendations, profitability and institutional ownership.

Earnings & Valuation

This table compares NNN REIT and Pebblebrook Hotel Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NNN REIT	$828.11 million	9.14	$392.34 million	$2.16	18.69
Pebblebrook Hotel Trust	$1.45 billion	1.11	-$78.02 million	($0.29)	-46.38

NNN REIT has higher earnings, but lower revenue than Pebblebrook Hotel Trust. Pebblebrook Hotel Trust is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.0% of NNN REIT shares are held by institutional investors. 0.8% of NNN REIT shares are held by insiders. Comparatively, 2.4% of Pebblebrook Hotel Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for NNN REIT and Pebblebrook Hotel Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NNN REIT	1	7	3	0	2.18
Pebblebrook Hotel Trust	2	3	2	0	2.00

NNN REIT currently has a consensus target price of $45.85, indicating a potential upside of 13.55%. Pebblebrook Hotel Trust has a consensus target price of $14.64, indicating a potential upside of 8.87%. Given NNN REIT’s stronger consensus rating and higher probable upside, equities analysts plainly believe NNN REIT is more favorable than Pebblebrook Hotel Trust.

Volatility and Risk

NNN REIT has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Pebblebrook Hotel Trust has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500.

Dividends

NNN REIT pays an annual dividend of $2.32 per share and has a dividend yield of 5.7%. Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. NNN REIT pays out 107.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pebblebrook Hotel Trust pays out -13.8% of its earnings in the form of a dividend. NNN REIT has increased its dividend for 35 consecutive years. NNN REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares NNN REIT and Pebblebrook Hotel Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NNN REIT	45.63%	9.37%	4.52%
Pebblebrook Hotel Trust	0.25%	0.13%	0.06%

Summary

NNN REIT beats Pebblebrook Hotel Trust on 13 of the 17 factors compared between the two stocks.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.

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.