RLJ Lodging Trust (RLJ) vs Sunstone Hotel Investors, Inc. (SHO)

RLJ Lodging Trust 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 $1.7B — 1.2× the size. RLJ Lodging 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 1.07%. Sunstone Hotel Investors, Inc. has the higher net margin (4.21% vs 0.18%) and the higher return on invested capital (2.16% vs 2.12%). Both pay a dividend; RLJ Lodging Trust yields more (3.02% vs 2.43%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 11 and RLJ Lodging Trust on 10.

Valuation

Metric RLJ SHO Reit Hotel & Motel median
P/E n/m 50.86 25.03
P/S 1.22 2.07 1.53
P/B 0.93 1.27 1.05
Price to free cash flow 7.25 19.91 7.25
EV/EBITDA 9.76 11.76 11.74
EV/Sales 2.46 2.83 2.64
Earnings yield 0.00% 1.97% (0.39%)
Free cash flow yield 13.78% 5.02% 7.53%

Profitability

Metric RLJ SHO Reit Hotel & Motel median
Gross margin 61.99% 63.41% 37.37%
Operating margin 9.53% 9.12% 9.53%
Net margin 0.18% 4.21% (0.66%)
Free cash flow margin 16.75% 9.65% 17.01%
Return on equity 0.13% 2.53% 0.53%
Return on assets 0.05% 1.40% (0.26%)
Return on invested capital 2.12% 2.16% 2.16%

Growth

Metric RLJ SHO Reit Hotel & Motel median
Revenue growth (TTM) 1.07% 7.28% 1.17%
EPS growth (last fiscal year) (96.30%) (71.43%) —
Revenue growth, 5-year CAGR 23.33% 29.08% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RLJ SHO Reit Hotel & Motel median
Debt to equity 1.24 0.51 0.83
Current ratio 5.71 3.84 1.34
Net debt to EBITDA 5.14 3.29 5.14

Dividend

Metric RLJ SHO Reit Hotel & Motel median
Dividend yield 3.02% 2.43% 3.10%
Payout ratio 0.81 0.48 0.48

Size

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

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