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 $4.4B against $2.4B — 1.8× the size. Apple Hospitality REIT, Inc. trades at the lower P/E: 25.3× against 58.7×. 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 (5.14% vs 2.79%). 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 25.26 58.73 28.25
P/S 3.06 2.39 1.63
P/B 1.41 1.46 1.11
Price to free cash flow 15.86 22.99 8.28
EV/EBITDA 16.57 13.09 13.09
EV/Sales 5.22 3.15 2.84
Earnings yield 3.96% 1.70% (0.33%)
Free cash flow yield 6.30% 4.35% 6.50%

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%) (16.85%)
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 0.86
Current ratio 0.73 3.84 1.38
Net debt to EBITDA 3.64 3.29 5.14

Dividend

Metric APLE SHO Reit Hotel & Motel median
Dividend yield 5.14% 2.79% 3.00%
Payout ratio 1.30 1.64 1.24

Size

Metric APLE SHO Reit Hotel & Motel median
Market cap 4.37b 2.38b 1.93b

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