Head-To-Head Review: Summit Hotel Properties (NYSE:INN) & CDL Hospitality Trusts (OTCMKTS:CDHSF)

CDL Hospitality Trusts (OTCMKTS:CDHSF) and Summit Hotel Properties (NYSE:INN) are both real estate companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations for CDL Hospitality Trusts and Summit Hotel Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CDL Hospitality Trusts	0	0	0	0	N/A
Summit Hotel Properties	0	1	0	0	2.00

Dividends

CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 16.1%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.7%. CDL Hospitality Trusts pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties pays out -133.3% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares CDL Hospitality Trusts and Summit Hotel Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CDL Hospitality Trusts	N/A	N/A	N/A	$0.13	5.35
Summit Hotel Properties	$741.30 million	1.00	-$12.11 million	($0.24)	-28.63

CDL Hospitality Trusts has higher earnings, but lower revenue than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than CDL Hospitality Trusts, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CDL Hospitality Trusts and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CDL Hospitality Trusts	N/A	N/A	N/A
Summit Hotel Properties	3.23%	1.76%	0.81%

Institutional & Insider Ownership

16.5% of CDL Hospitality Trusts shares are owned by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are owned by institutional investors. 3.4% of Summit Hotel Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Summit Hotel Properties beats CDL Hospitality Trusts on 7 of the 10 factors compared between the two stocks.

About CDL Hospitality Trusts

CDL Hospitality Trusts (CDLHT) is one of Asia's leading hospitality trusts with assets under management of about S$3.3 billion as at 31 December 2023. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of November 1, 2023, the Company’s portfolio consisted of 101 assets, 57 of which are wholly owned, with a total of 15,035 guestrooms located in 24 states.