Chatham Lodging Trust (NYSE:CLDT – Get Free Report) and Sabra Healthcare REIT (NASDAQ:SBRA – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.
Volatility & Risk
Chatham Lodging Trust has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Sabra Healthcare REIT has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for Chatham Lodging Trust and Sabra Healthcare REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chatham Lodging Trust | 0 | 0 | 2 | 0 | 3.00 |
| Sabra Healthcare REIT | 0 | 3 | 3 | 1 | 2.71 |
Dividends
Chatham Lodging Trust pays an annual dividend of $0.36 per share and has a dividend yield of 5.1%. Sabra Healthcare REIT pays an annual dividend of $1.20 per share and has a dividend yield of 6.5%. Chatham Lodging Trust pays out 600.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sabra Healthcare REIT pays out 203.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Chatham Lodging Trust has raised its dividend for 2 consecutive years. Sabra Healthcare REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Chatham Lodging Trust and Sabra Healthcare REIT”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chatham Lodging Trust | $317.21 million | 1.10 | $4.17 million | $0.06 | 118.50 |
| Sabra Healthcare REIT | $703.23 million | 6.24 | $126.71 million | $0.59 | 31.25 |
Sabra Healthcare REIT has higher revenue and earnings than Chatham Lodging Trust. Sabra Healthcare 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.
Profitability
This table compares Chatham Lodging Trust and Sabra Healthcare REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chatham Lodging Trust | 3.44% | 1.38% | 0.86% |
| Sabra Healthcare REIT | 19.55% | 5.14% | 2.65% |
Insider and Institutional Ownership
88.4% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 99.4% of Sabra Healthcare REIT shares are held by institutional investors. 7.1% of Chatham Lodging Trust shares are held by company insiders. Comparatively, 1.1% of Sabra Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Sabra Healthcare REIT beats Chatham Lodging Trust on 12 of the 18 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 Sabra Healthcare REIT
Sabra Health Care REIT, Inc. engages in the business of acquiring, financing, and owning real estate property. The company was founded on May 10, 2010 and is headquartered in Tustin, CA.
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