Sunstone Hotel Investors, Inc. (SHO) vs Xenia Hotels & Resorts, Inc. (XHR)

Sunstone Hotel Investors, Inc. and Xenia Hotels & Resorts, Inc. are both Reit Hotel & Motel companies. Sunstone Hotel Investors, Inc. is the larger, with a market value of $2.2B against $1.7B — 1.3× the size. Xenia Hotels & Resorts, 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 1.65%. Sunstone Hotel Investors, Inc. has the higher net margin (4.21% vs −0.66%) and the higher return on invested capital (2.16% vs 1.96%). Both pay a dividend; Sunstone Hotel Investors, Inc. yields more (3.04% vs 2.95%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 15 and Xenia Hotels & Resorts, Inc. on 6.

Valuation

Metric SHO XHR Reit Hotel & Motel median
P/E 53.77 n/m 26.14
P/S 2.19 1.60 1.47
P/B 1.34 1.50 1.05
Price to free cash flow 21.05 16.98 7.55
EV/EBITDA 12.25 14.13 12.25
EV/Sales 2.95 2.67 2.83
Earnings yield 1.86% (0.37%) (0.37%)
Free cash flow yield 4.75% 5.89% 7.02%

Profitability

Metric SHO XHR Reit Hotel & Motel median
Gross margin 63.41% 59.81% 37.37%
Operating margin 9.12% 6.69% 9.53%
Net margin 4.21% (0.66%) (0.66%)
Free cash flow margin 9.65% 10.57% 17.01%
Return on equity 2.53% (0.60%) 0.53%
Return on assets 1.40% (0.26%) (0.26%)
Return on invested capital 2.16% 1.96% 2.16%

Growth

Metric SHO XHR Reit Hotel & Motel median
Revenue growth (TTM) 7.28% 1.65% 1.17%
EPS growth (last fiscal year) (71.43%) 326.67% (16.85%)
Revenue growth, 5-year CAGR 29.08% 23.87% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric SHO XHR Reit Hotel & Motel median
Debt to equity 0.51 1.17 0.83
Current ratio 3.84 2.47 1.34
Net debt to EBITDA 3.29 4.94 5.14

Dividend

Metric SHO XHR Reit Hotel & Motel median
Dividend yield 3.04% 2.95% 3.15%
Payout ratio 1.64 — 1.24

Size

Metric SHO XHR Reit Hotel & Motel median
Market cap 2.21b 1.72b 1.78b

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