Analyzing Equity LifeStyle Properties (NYSE:ELS) & Chatham Lodging Trust (NYSE:CLDT)

Equity LifeStyle Properties (NYSE:ELS) and Chatham Lodging Trust (NYSE:CLDT) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

97.2% of Equity LifeStyle Properties shares are held by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are held by institutional investors. 1.4% of Equity LifeStyle Properties shares are held by company insiders. Comparatively, 6.5% of Chatham Lodging Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Equity LifeStyle Properties and Chatham Lodging Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity LifeStyle Properties	$1.49 billion	8.54	$314.21 million	$1.94	34.34
Chatham Lodging Trust	$314.38 million	1.43	$2.64 million	($0.23)	-39.87

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

Analyst Ratings

This is a breakdown of recent ratings for Equity LifeStyle Properties and Chatham Lodging Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity LifeStyle Properties	0	6	4	1	2.55
Chatham Lodging Trust	0	0	2	0	3.00

Equity LifeStyle Properties currently has a consensus price target of $72.50, suggesting a potential upside of 8.84%. Chatham Lodging Trust has a consensus price target of $12.00, suggesting a potential upside of 30.86%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Chatham Lodging Trust is more favorable than Equity LifeStyle Properties.

Volatility & Risk

Equity LifeStyle Properties has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Chatham Lodging Trust has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Dividends

Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.9%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 3.1%. Equity LifeStyle Properties pays out 98.5% 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 pays out -121.7% of its earnings in the form of a dividend. Equity LifeStyle Properties has raised its dividend for 20 consecutive years. Chatham Lodging Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Equity LifeStyle Properties and Chatham Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity LifeStyle Properties	23.97%	24.10%	6.44%
Chatham Lodging Trust	-0.99%	-0.39%	-0.24%

Summary

Equity LifeStyle Properties beats Chatham Lodging Trust on 12 of the 18 factors compared between the two stocks.

About Equity LifeStyle Properties

We are a self-administered, self-managed real estate investment trust (REIT) with headquarters in Chicago. As of January 29, 2024, we own or have an interest in 451 properties in 35 states and British Columbia consisting of 172,465 sites.

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.