Liberty Property Trust (NYSE:LPT) and Chesapeake Lodging Trust (NYSE:CHSP) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.
Liberty Property Trust pays an annual dividend of $1.64 per share and has a dividend yield of 3.3%. Chesapeake Lodging Trust pays an annual dividend of $1.60 per share and has a dividend yield of 5.6%. Liberty Property Trust pays out 74.5% of its earnings in the form of a dividend. Chesapeake Lodging Trust pays out 68.4% 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. Chesapeake Lodging Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Liberty Property Trust and Chesapeake Lodging Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Liberty Property Trust||57.53%||4.61%||2.25%|
|Chesapeake Lodging Trust||16.56%||6.25%||3.38%|
Risk & Volatility
Liberty Property Trust has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, Chesapeake Lodging Trust has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Insider & Institutional Ownership
92.6% of Liberty Property Trust shares are owned by institutional investors. Comparatively, 97.8% of Chesapeake Lodging Trust shares are owned by institutional investors. 1.4% of Liberty Property Trust shares are owned by insiders. Comparatively, 2.6% of Chesapeake Lodging Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Liberty Property Trust and Chesapeake Lodging Trust’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Liberty Property Trust||$704.89 million||10.41||$479.61 million||$2.20||22.49|
|Chesapeake Lodging Trust||$597.17 million||2.91||$96.97 million||$2.34||12.22|
Liberty Property Trust has higher revenue and earnings than Chesapeake Lodging Trust. Chesapeake Lodging Trust is trading at a lower price-to-earnings ratio than Liberty Property Trust, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Liberty Property Trust and Chesapeake Lodging Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Liberty Property Trust||0||6||1||0||2.14|
|Chesapeake Lodging Trust||0||4||0||0||2.00|
Liberty Property Trust presently has a consensus target price of $45.17, suggesting a potential downside of 8.70%. Chesapeake Lodging Trust has a consensus target price of $29.75, suggesting a potential upside of 4.06%. Given Chesapeake Lodging Trust’s higher probable upside, analysts clearly believe Chesapeake Lodging Trust is more favorable than Liberty Property Trust.
Chesapeake Lodging Trust beats Liberty Property Trust on 9 of the 16 factors compared between the two stocks.
Liberty Property Trust Company Profile
Liberty Property Trust is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior logistics, warehouse, manufacturing, and R&D facilities in key markets. Liberty's 108 million square foot operating portfolio provides productive work environments to 1,200 tenants.
Chesapeake Lodging Trust Company Profile
Chesapeake Lodging Trust is a self-advised lodging real estate investment trust (REIT) focused on investments primarily in upper-upscale hotels in major business and convention markets and, on a selective basis, premium select-service hotels in urban settings or unique locations in the United States. The Trust owns 20 hotels with an aggregate of 6,288 rooms in eight states and the District of Columbia.
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