WallStSmart

Chatham Lodging Trust REIT (CLDT)vsDiamondrock Hospitality Company (DRH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Diamondrock Hospitality Company generates 278% more annual revenue ($1.14B vs $300.38M). DRH leads profitability with a 13.5% profit margin vs 4.0%. CLDT appears more attractively valued with a PEG of 2.28. DRH earns a higher WallStSmart Score of 63/100 (C+).

CLDT

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 5.3Quality: 4.0
Piotroski: 3/9Altman Z: 1.20

DRH

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 6.0Value: 6.7Quality: 6.0
Piotroski: 5/9Altman Z: 0.69
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CLDTUndervalued (+77.5%)

Margin of Safety

+77.5%

Fair Value

$33.97

Current Price

$12.90

$21.07 discount

UndervaluedFair: $33.97Overvalued
DRHUndervalued (+37.8%)

Margin of Safety

+37.8%

Fair Value

$16.11

Current Price

$12.20

$3.91 discount

UndervaluedFair: $16.11Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CLDT2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
90.7%10/10

Earnings expanding 90.7% YoY

DRH4 strengths · Avg: 8.5/10
EPS GrowthGrowth
144.4%10/10

Earnings expanding 144.4% YoY

P/E RatioValuation
16.8x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.0%8/10

Strong operational efficiency at 23.0%

Areas to Watch

CLDT4 concerns · Avg: 3.3/10
PEG RatioValuation
2.284/10

Expensive relative to growth rate

Market CapQuality
$631.64M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
1.7%3/10

ROE of 1.7% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

DRH4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Return on EquityProfitability
6.9%3/10

ROE of 6.9% — below average capital efficiency

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Altman Z-ScoreHealth
0.692/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : CLDT

The strongest argument for CLDT centers on Price/Book, EPS Growth.

Bull Case : DRH

The strongest argument for DRH centers on EPS Growth, P/E Ratio, Price/Book.

Bear Case : CLDT

The primary concerns for CLDT are PEG Ratio, Market Cap, Return on Equity. A P/E of 161.3x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Bear Case : DRH

The primary concerns for DRH are Revenue Growth, Return on Equity, PEG Ratio.

Key Dynamics to Monitor

CLDT carries more volatility with a beta of 1.09 — expect wider price swings.

CLDT is growing revenue faster at 9.4% — sustainability is the question.

DRH generates stronger free cash flow (60M), providing more financial flexibility.

Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRH scores higher overall (63/100 vs 58/100). CLDT offers better value entry with a 77.5% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Chatham Lodging Trust REIT

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Chatham Lodging Trust is a publicly traded, self-listed real estate investment trust primarily focused on investing in exclusive extended stay hotels and select service hotels of premium brands.

Diamondrock Hospitality Company

REAL ESTATE · REIT - HOTEL & MOTEL · USA

DiamondRock Hospitality Company is a self-advising real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in major entry markets and destination resort locations.

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