Summit Hotel Properties, Inc. (INN) vs Sunstone Hotel Investors, Inc. (SHO)

Summit Hotel Properties, Inc. and Sunstone Hotel Investors, Inc. are both Reit Hotel & Motel companies. Sunstone Hotel Investors, Inc. is the larger, with a market value of $2.1B against $691.9M — 3.0× the size. Summit Hotel Properties, Inc. has negative trailing earnings, so its P/E is not meaningful; Sunstone Hotel Investors, Inc. trades at 50.9×. Sunstone Hotel Investors, Inc. grew revenue faster over the last twelve months: 7.28% against 1.24%. Sunstone Hotel Investors, Inc. has the higher net margin (4.21% vs −3.24%) and the higher return on invested capital (2.16% vs 1.64%). Both pay a dividend; Summit Hotel Properties, Inc. yields more (3.41% vs 2.43%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 13 and Summit Hotel Properties, Inc. on 8.

Valuation

Metric INN SHO Reit Hotel & Motel median
P/E n/m 50.86 25.03
P/S 0.82 2.07 1.53
P/B 0.51 1.27 1.05
Price to free cash flow 4.23 19.91 7.25
EV/EBITDA 8.70 11.76 11.74
EV/Sales 2.62 2.83 2.64
Earnings yield (4.01%) 1.97% (0.39%)
Free cash flow yield 23.66% 5.02% 7.53%

Profitability

Metric INN SHO Reit Hotel & Motel median
Gross margin 33.34% 63.41% 37.37%
Operating margin 8.99% 9.12% 9.53%
Net margin (3.24%) 4.21% (0.66%)
Free cash flow margin 19.33% 9.65% 17.01%
Return on equity (1.93%) 2.53% 0.53%
Return on assets (0.85%) 1.40% (0.26%)
Return on invested capital 1.64% 2.16% 2.16%

Growth

Metric INN SHO Reit Hotel & Motel median
Revenue growth (TTM) 1.24% 7.28% 1.17%
EPS growth (last fiscal year) (200.00%) (71.43%) —
Revenue growth, 5-year CAGR 25.48% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric INN SHO Reit Hotel & Motel median
Debt to equity 1.15 0.51 0.83
Current ratio 0.71 3.84 1.34
Net debt to EBITDA 6.09 3.29 5.14

Dividend

Metric INN SHO Reit Hotel & Motel median
Dividend yield 3.41% 2.43% 3.10%
Payout ratio 0.00 0.48 0.48

Size

Metric INN SHO Reit Hotel & Motel median
Market cap 691.92m 2.07b 1.70b

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