Review of Pebblebrook Hotel Trust (NYSE:PEB) and Broadstone Net Lease (NYSE:BNL)


Pebblebrook Hotel Trust (NYSE: PEBGet a rating) and Broadstone Net Lease (NYSE: BNLGet a rating) are both mid-cap finance companies, but which is the better investment? We’ll compare the two companies based on their dividend strength, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Pebblebrook Hotel Trust and Broadstone Net Lease, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Pebblebrook Hotel Trust 1 5 3 0 2.22
Broadstone Net Lease 0 3 0 0 2.00

Pebblebrook Hotel Trust currently has a consensus price target of $23.92, suggesting a potential upside of 17.82%. Broadstone Net Lease has a consensus price target of $21.67, suggesting a potential upside of 2.39%. Given Pebblebrook Hotel Trust’s stronger consensus rating and possible higher upside, research analysts clearly believe that Pebblebrook Hotel Trust is more favorable than Broadstone Net Lease.

Dividends

Pebblebrook Hotel Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Broadstone Net Lease pays an annual dividend of $1.08 per share and has a dividend yield of 5.1%. Pebblebrook Hotel Trust distributes -2.7% of its profits as a dividend. Broadstone Net Lease pays 147.9% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Broadstone Net Lease has increased its dividend for 1 consecutive year. Broadstone Net Lease is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This table compares the gross revenue, earnings per share (EPS) and valuation of Pebblebrook Hotel Trust and Broadstone Net Lease.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Pebblebrook Hotel Trust $733.04 million 3.64 -$184.86 million ($1.48) -13.72
Broadstone Net Lease $382.88 million 9.57 $102.43 million $0.73 28.99

Broadstone Net Lease has lower revenues, but higher profits than Pebblebrook Hotel Trust. Pebblebrook Hotel Trust trades at a lower price-to-earnings ratio than Broadstone Net Lease, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Pebblebrook Hotel Trust and Broadstone Net Lease.

Net margins Return on equity return on assets
Pebblebrook Hotel Trust -12.03% -4.35% -2.19%
Broadstone Net Lease 29.28% 4.22% 2.52%

Volatility and risk

Pebblebrook Hotel Trust has a beta of 1.79, suggesting its stock price is 79% more volatile than the S&P 500. By comparison, Broadstone Net Lease has a beta of 0.95, suggesting its stock price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

78.7% of Broadstone Net Lease shares are held by institutional investors. 1.9% of Pebblebrook Hotel Trust shares are held by insiders. By comparison, 0.8% of Broadstone Net Lease shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a company will outperform the market over the long term.

Summary

Broadstone Net Lease beats Pebblebrook Hotel Trust on 10 of the 17 factors compared between the two stocks.

About Pebblebrook Hotel Trust

(Get a rating)

Pebblebrook Hotel Trust (NYSE:PEB) is a publicly traded real estate investment trust (“REIT”) and the largest owner of city and resort hotels in the United States. The company owns 53 hotels, totaling approximately 13,200 rooms in 14 city and resort markets, with an emphasis on West Coast gateway cities.

About Broadstone Net Lease

(Get a rating)

BNL is an internally managed REIT that primarily acquires, owns and manages single-tenant commercial real estate that is net leased on a long-term basis to a diverse group of tenants. The Company employs an investment strategy supported by strong fundamental credit analysis and prudent real estate underwriting. As of September 30, 2020, BNL’s diversified portfolio consisted of 627 properties in 41 U.S. states and one property in Canada across industrial, healthcare, restaurant, office and retail property types, with an aggregate gross asset value of approximately $4.0 billion.



Get news and reviews for Pebblebrook Hotel Trust Daily – Enter your email address below to receive a concise daily summary of the latest news and analyst ratings for Pebblebrook Hotel Trust and related companies with MarketBeat.com’s FREE daily newsletter.

Comments are closed.