NNN REIT (NYSE:NNN) and Pebblebrook Hotel Trust (NYSE:PEB) Head to Head Survey

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

Profitability

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

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

Analyst Recommendations

This is a summary of current ratings for Pebblebrook Hotel Trust and NNN REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	1	3	2	0	2.17
NNN REIT	1	7	3	0	2.18

Pebblebrook Hotel Trust presently has a consensus target price of $14.83, suggesting a potential upside of 12.80%. NNN REIT has a consensus target price of $45.85, suggesting a potential upside of 20.63%. Given NNN REIT’s stronger consensus rating and higher possible upside, analysts plainly believe NNN REIT is more favorable than Pebblebrook Hotel Trust.

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. NNN REIT pays an annual dividend of $2.32 per share and has a dividend yield of 6.1%. Pebblebrook Hotel Trust pays out -13.8% of its earnings in the form of a dividend. 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. NNN REIT has raised 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.

Volatility & Risk

Pebblebrook Hotel Trust has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.45 billion	1.09	-$78.02 million	($0.29)	-45.34
NNN REIT	$867.02 million	8.22	$392.34 million	$2.16	17.60

NNN REIT has lower revenue, but higher earnings 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.

Summary

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

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.

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.