Pebblebrook Hotel Trust (NYSE:PEB) & Peakstone Realty Trust (NYSE:PKST) Financial Comparison

Pebblebrook Hotel Trust (NYSE:PEB) and Peakstone Realty Trust (NYSE:PKST) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Peakstone Realty Trust pays an annual dividend of $0.90 per share and has a dividend yield of 6.5%. Pebblebrook Hotel Trust pays out -8.3% of its earnings in the form of a dividend. Peakstone Realty Trust pays out -50.8% 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. Peakstone Realty Trust has raised its dividend for 1 consecutive years. Peakstone Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

39.0% of Peakstone Realty Trust shares are owned by institutional investors. 3.1% of Pebblebrook Hotel Trust shares are owned by company insiders. Comparatively, 0.8% of Peakstone Realty Trust shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Pebblebrook Hotel Trust and Peakstone Realty Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pebblebrook Hotel Trust	2	4	1	0	1.86
Peakstone Realty Trust	0	1	1	0	2.50

Pebblebrook Hotel Trust currently has a consensus target price of $11.91, suggesting a potential upside of 8.08%. Peakstone Realty Trust has a consensus target price of $15.50, suggesting a potential upside of 11.11%. Given Peakstone Realty Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Peakstone Realty Trust is more favorable than Pebblebrook Hotel Trust.

Volatility & Risk

Pebblebrook Hotel Trust has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Peakstone Realty Trust has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Pebblebrook Hotel Trust	-0.61%	-0.32%	-0.16%
Peakstone Realty Trust	-28.71%	-5.70%	-2.48%

Valuation and Earnings

This table compares Pebblebrook Hotel Trust and Peakstone Realty Trust”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pebblebrook Hotel Trust	$1.46 billion	0.90	-$4.24 million	($0.48)	-22.95
Peakstone Realty Trust	$228.07 million	2.25	-$10.43 million	($1.77)	-7.88

Pebblebrook Hotel Trust has higher revenue and earnings than Peakstone Realty Trust. Pebblebrook Hotel Trust is trading at a lower price-to-earnings ratio than Peakstone Realty Trust, indicating that it is currently the more affordable of 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 Peakstone Realty Trust

Peakstone Realty Trust (NYSE: PKST) is an internally managed, real estate investment trust (REIT) that owns and operates a high-quality, newer-vintage portfolio of predominantly single-tenant industrial and office properties. These assets are generally leased to creditworthy tenants under long-term net lease agreements with contractual rent escalations. As of March 31, 2023, Peakstone's wholly-owned portfolio consists of 19 million square feet across 24 states in primarily high-growth, strategic coastal and sunbelt markets.