Pebblebrook Hotel Trust (PEB) vs Sunstone Hotel Investors, Inc. (SHO)

Pebblebrook Hotel Trust and Sunstone Hotel Investors, Inc. are both Reit Hotel & Motel companies. Pebblebrook Hotel Trust and Sunstone Hotel Investors, Inc. are of similar size ($2.1B and $2.1B). Pebblebrook Hotel Trust 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 2.08%. Sunstone Hotel Investors, Inc. has the higher net margin (4.21% vs −5.24%) and the higher return on invested capital (2.16% vs 0.92%). Both pay a dividend; Sunstone Hotel Investors, Inc. yields more (2.43% vs 0.26%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 15 and Pebblebrook Hotel Trust on 6.

Valuation

Metric PEB SHO Reit Hotel & Motel median
P/E n/m 50.86 25.03
P/S 1.38 2.07 1.53
P/B 0.83 1.27 1.05
Price to free cash flow 6.38 19.91 7.25
EV/EBITDA 13.34 11.76 11.74
EV/Sales 2.62 2.83 2.64
Earnings yield (3.69%) 1.97% (0.39%)
Free cash flow yield 15.68% 5.02% 7.53%

Profitability

Metric PEB SHO Reit Hotel & Motel median
Gross margin 25.34% 63.41% 37.37%
Operating margin 4.26% 9.12% 9.53%
Net margin (5.24%) 4.21% (0.66%)
Free cash flow margin 21.70% 9.65% 17.01%
Return on equity (3.00%) 2.53% 0.53%
Return on assets (1.44%) 1.40% (0.26%)
Return on invested capital 0.92% 2.16% 2.16%

Growth

Metric PEB SHO Reit Hotel & Motel median
Revenue growth (TTM) 2.08% 7.28% 1.17%
EPS growth (last fiscal year) (130.77%) (71.43%) —
Revenue growth, 5-year CAGR 27.21% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric PEB SHO Reit Hotel & Motel median
Debt to equity 0.83 0.51 0.83
Current ratio 1.34 3.84 1.34
Net debt to EBITDA 6.79 3.29 5.14

Dividend

Metric PEB SHO Reit Hotel & Motel median
Dividend yield 0.26% 2.43% 3.10%
Payout ratio — 0.48 0.48

Size

Metric PEB SHO Reit Hotel & Motel median
Market cap 2.10b 2.07b 1.70b

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