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 $2.2B against $775.2M — 2.9× the size. Summit Hotel Properties, Inc. has negative trailing earnings, so its P/E is not meaningful; Sunstone Hotel Investors, Inc. trades at 53.8×. 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 (4.89% vs 3.04%). 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 53.77 26.14
P/S 0.93 2.19 1.47
P/B 0.58 1.34 1.05
Price to free cash flow 4.82 21.05 7.55
EV/EBITDA 9.08 12.25 12.25
EV/Sales 2.74 2.95 2.83
Earnings yield (3.52%) 1.86% (0.37%)
Free cash flow yield 20.77% 4.75% 7.02%

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%) (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 1.15 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 4.89% 3.04% 3.15%
Payout ratio — 1.64 1.24

Size

Metric INN SHO Reit Hotel & Motel median
Market cap 775.24m 2.21b 1.78b

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