Head to Head Review: InnSuites Hospitality Trust (NYSE:IHT) vs. Service Properties Trust (NASDAQ:SVC)

Service Properties Trust (NASDAQ:SVC) and InnSuites Hospitality Trust (NYSE:IHT) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Service Properties Trust and InnSuites Hospitality Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Properties Trust	1	2	3	0	2.33
InnSuites Hospitality Trust	0	0	0	0	0.00

Service Properties Trust presently has a consensus target price of $12.81, indicating a potential upside of 57.60%. Given Service Properties Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Service Properties Trust is more favorable than InnSuites Hospitality Trust.

Profitability

This table compares Service Properties Trust and InnSuites Hospitality Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Service Properties Trust	-25.44%	-65.18%	-6.66%
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%

Institutional & Insider Ownership

77.6% of Service Properties Trust shares are held by institutional investors. Comparatively, 2.5% of InnSuites Hospitality Trust shares are held by institutional investors. 1.6% of Service Properties Trust shares are held by company insiders. Comparatively, 68.1% of InnSuites Hospitality Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Service Properties Trust and InnSuites Hospitality Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Service Properties Trust	$1.81 billion	0.58	-$202.32 million	($7.70)	-1.06
InnSuites Hospitality Trust	$7.56 million	1.98	$200,000.00	($0.14)	-11.36

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

Dividends

Service Properties Trust pays an annual dividend of $0.20 per share and has a dividend yield of 2.5%. InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.3%. Service Properties Trust pays out -2.6% of its earnings in the form of a dividend. InnSuites Hospitality Trust pays out -14.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Service Properties Trust has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, InnSuites Hospitality Trust has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service. As of December 31, 2023, SVC also owned 752 service-focused retail net lease properties totaling approximately 13.3 million square feet throughout the United States. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $41 billion in assets under management as of December 31, 2023, and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.

About InnSuites Hospitality Trust

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.