Summit Hotel Properties, Inc. (INN) vs Service Properties Trust (SVC)

Summit Hotel Properties, Inc. and Service Properties Trust are both Reit Hotel & Motel companies. Service Properties Trust is the larger, with a market value of $839.2M against $691.9M — 1.2× the size. Summit Hotel Properties, Inc. grew revenue faster over the last twelve months: 1.24% against −11.9%. Summit Hotel Properties, Inc. has the higher net margin (−3.24% vs −25.4%) and the higher return on invested capital (1.64% vs −1.68%). Both pay a dividend; Service Properties Trust yields more (10.4% vs 3.41%). Across the 21 metrics below, Summit Hotel Properties, Inc. leads on 11 and Service Properties Trust on 10.

Valuation

Metric INN SVC Reit Hotel & Motel median
P/E n/m n/m 25.03
P/S 0.82 0.51 1.53
P/B 0.51 1.05 1.05
Price to free cash flow 4.23 1.24 7.25
EV/EBITDA 8.70 8.32 11.74
EV/Sales 2.62 1.52 2.64
Earnings yield (4.01%) (116.84%) (0.39%)
Free cash flow yield 23.66% 80.89% 7.53%

Profitability

Metric INN SVC Reit Hotel & Motel median
Gross margin 33.34% 33.86% 37.37%
Operating margin 8.99% (4.01%) 9.53%
Net margin (3.24%) (25.44%) (0.66%)
Free cash flow margin 19.33% 41.09% 17.01%
Return on equity (1.93%) (56.28%) 0.53%
Return on assets (0.85%) (6.62%) (0.26%)
Return on invested capital 1.64% (1.68%) 2.16%

Growth

Metric INN SVC Reit Hotel & Motel median
Revenue growth (TTM) 1.24% (11.91%) 1.17%
EPS growth (last fiscal year) (200.00%) 26.95% —
Revenue growth, 5-year CAGR 25.48% 7.48% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric INN SVC Reit Hotel & Motel median
Debt to equity 1.15 2.11 0.83
Current ratio 0.71 0.01 1.34
Net debt to EBITDA 6.09 6.01 5.14

Dividend

Metric INN SVC Reit Hotel & Motel median
Dividend yield 3.41% 10.36% 3.10%
Payout ratio 0.00 — 0.48

Size

Metric INN SVC Reit Hotel & Motel median
Market cap 691.92m 839.22m 1.70b

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