Financial Contrast: Summit Hotel Properties (INN) vs. Its Peers

Summit Hotel Properties (NYSE:INN – Get Free Report) is one of 24 public companies in the “Hotel & Resort REITs” industry, but how does it contrast to its peers? We will compare Summit Hotel Properties to similar companies based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Profitability

This table compares Summit Hotel Properties and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Hotel Properties -0.49% -0.31% -0.13%
Summit Hotel Properties Competitors 0.48% 11.24% 1.31%

Analyst Ratings

This is a summary of current ratings and recommmendations for Summit Hotel Properties and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Hotel Properties 1 1 2 0 2.25
Summit Hotel Properties Competitors 541 1749 1293 33 2.23

Summit Hotel Properties presently has a consensus target price of $6.00, indicating a potential downside of 16.84%. As a group, “Hotel & Resort REITs” companies have a potential downside of 1.18%. Given Summit Hotel Properties’ peers higher probable upside, analysts plainly believe Summit Hotel Properties has less favorable growth aspects than its peers.

Risk and Volatility

Summit Hotel Properties has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, Summit Hotel Properties’ peers have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Earnings & Valuation

This table compares Summit Hotel Properties and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Summit Hotel Properties $729.47 million -$7.69 million -37.97
Summit Hotel Properties Competitors $1.39 billion $29.80 million 49.55

Summit Hotel Properties’ peers have higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.4%. Summit Hotel Properties pays out -168.4% of its earnings in the form of a dividend. As a group, “Hotel & Resort REITs” companies pay a dividend yield of 3.8% and pay out -745.1% of their earnings in the form of a dividend. Summit Hotel Properties has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 70.5% of shares of all “Hotel & Resort REITs” companies are held by institutional investors. 4.3% of Summit Hotel Properties shares are held by insiders. Comparatively, 8.9% of shares of all “Hotel & Resort REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Summit Hotel Properties peers beat Summit Hotel Properties on 10 of the 15 factors compared.

Summit Hotel Properties Company Profile

(Get Free Report)

Summit Hotel Properties, Inc. is a real estate investment trust that owns and invests in hotels in the United States. Its portfolio focuses primarily on select-service and limited-service properties, which offer lodging and essential guest amenities without the extensive facilities of full-service hotels. The company’s hotels operate under well-known hospitality brands, including brands affiliated with Marriott, Hilton, Hyatt and IHG. Summit targets markets it considers attractive for lodging investment, including urban and other locations with barriers to new hotel development.

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