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 $2.3B against $834.4M — 2.8× the size. Summit Hotel Properties, Inc. has negative trailing earnings, so its P/E is not meaningful; Sunstone Hotel Investors, Inc. trades at 27.7×. Sunstone Hotel Investors, Inc. grew revenue faster over the last twelve months: 7.42% against 2.38%. Sunstone Hotel Investors, Inc. has the higher net margin (8.32% vs −2.71%) and the higher return on invested capital (2.52% vs 1.87%). Both pay a dividend; Summit Hotel Properties, Inc. yields more (4.59% vs 2.89%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 11 and Summit Hotel Properties, Inc. on 10.

Valuation

Metric INN SHO Reit Hotel & Motel median
P/E n/m 27.67 28.97
P/S 0.98 2.24 1.57
P/B 0.62 1.38 1.22
Price to free cash flow 4.40 21.83 7.89
EV/EBITDA 8.90 11.96 11.96
EV/Sales 2.73 2.86 2.84
Earnings yield (2.43%) 3.61% 0.18%
Free cash flow yield 22.74% 4.58% 6.68%

Profitability

Metric INN SHO Reit Hotel & Motel median
Gross margin 33.80% 0.00% 32.55%
Operating margin 9.93% 9.66% 9.93%
Net margin (2.71%) 8.32% 0.34%
Free cash flow margin 22.31% 19.63% 19.63%
Return on equity (1.67%) 0.00% 0.59%
Return on assets (0.73%) 2.82% 0.14%
Return on invested capital 1.87% 2.52% 2.34%

Growth

Metric INN SHO Reit Hotel & Motel median
Revenue growth (TTM) 2.38% 7.42% 2.76%
EPS growth (last fiscal year) (200.00%) (71.43%) (16.85%)
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 1.16 0.53 0.80
Current ratio 0.83 3.84 1.15
Net debt to EBITDA 6.09 3.29 5.14

Dividend

Metric INN SHO Reit Hotel & Motel median
Dividend yield 4.59% 2.89% 3.05%
Payout ratio — 0.80 1.19

Size

Metric INN SHO Reit Hotel & Motel median
Market cap 834.39m 2.30b 1.96b

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