Apple Hospitality REIT, Inc. (APLE) vs Sunstone Hotel Investors, Inc. (SHO)

Apple Hospitality REIT, Inc. and Sunstone Hotel Investors, Inc. are both Reit Hotel & Motel companies. Apple Hospitality REIT, Inc. is the larger, with a market value of $3.8B against $2.1B — 1.8× the size. Apple Hospitality REIT, Inc. trades at the lower P/E: 21.9× against 50.9×. Sunstone Hotel Investors, Inc. grew revenue faster over the last twelve months: 7.28% against 1.17%. Apple Hospitality REIT, Inc. has the higher net margin (12.2% vs 4.21%) and the higher return on invested capital (3.40% vs 2.16%). Both pay a dividend; Apple Hospitality REIT, Inc. yields more (6.40% vs 2.43%). Across the 22 metrics below, Apple Hospitality REIT, Inc. leads on 14 and Sunstone Hotel Investors, Inc. on 8.

Valuation

Metric APLE SHO Reit Hotel & Motel median
P/E 21.88 50.86 25.03
P/S 2.65 2.07 1.53
P/B 1.22 1.27 1.05
Price to free cash flow 13.74 19.91 7.25
EV/EBITDA 15.27 11.76 11.74
EV/Sales 4.81 2.83 2.64
Earnings yield 4.57% 1.97% (0.39%)
Free cash flow yield 7.28% 5.02% 7.53%

Profitability

Metric APLE SHO Reit Hotel & Motel median
Gross margin 60.06% 63.41% 37.37%
Operating margin 17.93% 9.12% 9.53%
Net margin 12.17% 4.21% (0.66%)
Free cash flow margin 19.32% 9.65% 17.01%
Return on equity 5.53% 2.53% 0.53%
Return on assets 3.58% 1.40% (0.26%)
Return on invested capital 3.40% 2.16% 2.16%

Growth

Metric APLE SHO Reit Hotel & Motel median
Revenue growth (TTM) 1.17% 7.28% 1.17%
EPS growth (last fiscal year) (16.85%) (71.43%) —
Revenue growth, 5-year CAGR 18.60% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APLE SHO Reit Hotel & Motel median
Debt to equity 0.51 0.51 0.83
Current ratio 0.73 3.84 1.34
Net debt to EBITDA 3.64 3.29 5.14

Dividend

Metric APLE SHO Reit Hotel & Motel median
Dividend yield 6.40% 2.43% 3.10%
Payout ratio 1.30 0.48 0.48

Size

Metric APLE SHO Reit Hotel & Motel median
Market cap 3.80b 2.07b 1.70b

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