Contrasting Sotherly Hotels (OTCMKTS:SOHON) and Host Hotels & Resorts (NASDAQ:HST)

Host Hotels & Resorts (NASDAQ:HST) and Sotherly Hotels (OTCMKTS:SOHON) are both real estate companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Host Hotels & Resorts and Sotherly Hotels, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Host Hotels & Resorts	0	6	9	1	2.69
Sotherly Hotels	0	0	0	0	0.00

Host Hotels & Resorts presently has a consensus target price of $24.33, indicating a potential upside of 9.19%. Given Host Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Host Hotels & Resorts is more favorable than Sotherly Hotels.

Earnings & Valuation

This table compares Host Hotels & Resorts and Sotherly Hotels”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Host Hotels & Resorts	$6.11 billion	2.50	$765.00 million	$1.50	14.85
Sotherly Hotels	$176.39 million	N/A	N/A	N/A	N/A

Host Hotels & Resorts has higher revenue and earnings than Sotherly Hotels.

Profitability

This table compares Host Hotels & Resorts and Sotherly Hotels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Host Hotels & Resorts	16.51%	15.53%	7.83%
Sotherly Hotels	N/A	N/A	N/A

Dividends

Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 3.6%. Sotherly Hotels pays an annual dividend of $2.06 per share and has a dividend yield of 68.7%. Host Hotels & Resorts pays out 53.3% of its earnings in the form of a dividend. Host Hotels & Resorts has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

98.5% of Host Hotels & Resorts shares are held by institutional investors. 1.5% of Host Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Host Hotels & Resorts beats Sotherly Hotels on 11 of the 13 factors compared between the two stocks.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.

About Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.