Chatham Lodging Trust (NYSE:CLDT) vs. American Healthcare REIT (NYSE:AHR) Critical Analysis

Chatham Lodging Trust (NYSE:CLDT) and American Healthcare REIT (NYSE:AHR) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Volatility & Risk

Chatham Lodging Trust has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, American Healthcare REIT has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Insider and Institutional Ownership

88.4% of Chatham Lodging Trust shares are held by institutional investors. Comparatively, 16.7% of American Healthcare REIT shares are held by institutional investors. 6.5% of Chatham Lodging Trust shares are held by company insiders. Comparatively, 1.0% of American Healthcare REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Chatham Lodging Trust pays an annual dividend of $0.36 per share and has a dividend yield of 5.9%. American Healthcare REIT pays an annual dividend of $1.00 per share and has a dividend yield of 3.7%. Chatham Lodging Trust pays out -450.0% of its earnings in the form of a dividend. American Healthcare REIT pays out -370.4% 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. Chatham Lodging Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Chatham Lodging Trust and American Healthcare REIT”s 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	0.94	$2.64 million	($0.08)	-76.25
American Healthcare REIT	$2.07 billion	2.07	-$71.47 million	($0.27)	-100.96

Chatham Lodging Trust has higher earnings, but lower revenue than American Healthcare REIT. American 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Chatham Lodging Trust and American Healthcare REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chatham Lodging Trust	0	0	2	0	3.00
American Healthcare REIT	0	0	7	0	3.00

Chatham Lodging Trust presently has a consensus price target of $12.00, suggesting a potential upside of 96.72%. American Healthcare REIT has a consensus price target of $33.33, suggesting a potential upside of 22.28%. Given Chatham Lodging Trust’s higher possible upside, analysts plainly believe Chatham Lodging Trust is more favorable than American Healthcare REIT.

Profitability

This table compares Chatham Lodging Trust and American Healthcare REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chatham Lodging Trust	-0.99%	-0.39%	-0.24%
American Healthcare REIT	-1.84%	-1.87%	-0.80%

Summary

Chatham Lodging Trust beats American Healthcare REIT on 12 of the 15 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 American Healthcare REIT

Formed by the successful merger of Griffin-American Healthcare REIT III and Griffin-American Healthcare REIT IV, as well as the acquisition of the business and operations of American Healthcare Investors, American Healthcare REIT is one of the larger healthcare-focused real estate investment trusts globally with assets totaling approximately $4.2 billion in gross investment value. The company benefits from a fully integrated management platform comprised of more than one hundred experienced and skilled professionals, many of whom have worked together since 2006 and have successfully invested in and managed healthcare real estate through multiple market cycles. The management team has a proven track record, deep industry relationships and unparalleled insight into each of the company's assets having built and nurtured the company's international portfolio since its original property acquisition in 2014. The strength of the management team, coupled with the quality of the assets, has American Healthcare REIT poised to capitalize on compelling growth driven by powerful demographic trends. With its 19 million-square-foot, 312-building portfolio of medical office buildings, senior housing communities, skilled nursing facilities and integrated senior health campuses diversified across 36 states and the United Kingdom, the tri-party transaction was a critical step in ideally positioning American Healthcare REIT for a future public listing or IPO on a national stock exchange at the most opportune time. By listing the company's shares on a national exchange, we believe the company will gain greater access to attractive capital that will fuel future growth, broaden our investor base and also provide liquidity to our fellow stockholders. American Healthcare REIT, Inc. operates as a subsidiary of Griffin Capital Company, LLC.