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 $2.1B 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 50.9×. 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; Xenia Hotels & Resorts, Inc. yields more (3.04% vs 2.43%). Across the 21 metrics below, Sunstone Hotel Investors, Inc. leads on 14 and Xenia Hotels & Resorts, Inc. on 7.

Valuation

Metric SHO XHR Reit Hotel & Motel median
P/E 50.86 n/m 25.03
P/S 2.07 1.53 1.53
P/B 1.27 1.44 1.05
Price to free cash flow 19.91 16.26 7.25
EV/EBITDA 11.76 13.77 11.74
EV/Sales 2.83 2.60 2.64
Earnings yield 1.97% (0.39%) (0.39%)
Free cash flow yield 5.02% 6.15% 7.53%

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% —
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 2.43% 3.04% 3.10%
Payout ratio 0.48 0.83 0.48

Size

Metric SHO XHR Reit Hotel & Motel median
Market cap 2.07b 1.65b 1.70b

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