Summit Hotel Properties (NYSE: INN) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it compare to its peers? We will compare Summit Hotel Properties to similar companies based off the strength of its valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Risk and Volatility

Summit Hotel Properties has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Summit Hotel Properties’ peers have a beta of 1.00, suggesting that their average stock price is 0% more volatile than the S&P 500.

Institutional & Insider Ownership

95.3% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 76.7% of shares of all “Hospitality REITs” companies are held by institutional investors. 1.7% of Summit Hotel Properties shares are held by company insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Summit Hotel Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.6%. Summit Hotel Properties pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Hospitality REITs” companies pay a dividend yield of 5.5% and pay out 135.3% of their earnings in the form of a dividend. Summit Hotel Properties has increased its dividend for 3 consecutive years.

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Summit Hotel Properties $475.70 million $154.58 million 16.53
Summit Hotel Properties Competitors $1.09 billion $355.70 million -15.53

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

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 26.41% 10.72% 7.21%
Summit Hotel Properties Competitors 10.53% 3.54% 3.12%

Analyst Ratings

This is a breakdown of current ratings and target prices for Summit Hotel Properties and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Hotel Properties 1 2 5 0 2.50
Summit Hotel Properties Competitors 232 922 892 19 2.34

Summit Hotel Properties presently has a consensus price target of $17.50, suggesting a potential upside of 17.61%. All “Hospitality REITs” companies have a potential upside of 6.04%. Given Summit Hotel Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Summit Hotel Properties is more favorable than its peers.

Summary

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

Summit Hotel Properties Company Profile

Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 79 hotels with a total of 11,590 guestrooms located in 24 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 92% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.

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