Equity LifeStyle Properties (NYSE:ELS) and Chatham Lodging Trust (NYSE:CLDT) Head-To-Head Contrast

Equity LifeStyle Properties (NYSE:ELS) and Chatham Lodging Trust (NYSE:CLDT) are both 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

Equity LifeStyle Properties pays an annual dividend of $1.91 per share and has a dividend yield of 2.8%. Chatham Lodging Trust pays an annual dividend of $0.28 per share and has a dividend yield of 2.9%. 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.

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.

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%

Valuation & Earnings

This table compares Equity LifeStyle Properties and Chatham Lodging Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity LifeStyle Properties	$1.43 billion	9.17	$314.21 million	$1.94	35.43
Chatham Lodging Trust	$314.38 million	1.50	$2.64 million	($0.23)	-41.91

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.

Insider and Institutional Ownership

97.2% of Equity LifeStyle Properties shares are owned by institutional investors. Comparatively, 88.4% of Chatham Lodging Trust shares are owned by institutional investors. 1.4% of Equity LifeStyle Properties shares are owned by company insiders. Comparatively, 6.5% of Chatham Lodging 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 Equity LifeStyle Properties and Chatham Lodging Trust, as reported by MarketBeat.com.

	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 target price of $72.50, suggesting a potential upside of 5.47%. Chatham Lodging Trust has a consensus target price of $12.00, suggesting a potential upside of 24.48%. Given Chatham Lodging Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Chatham Lodging Trust is more favorable than Equity LifeStyle Properties.

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.