Sotherly Hotels (NASDAQ: SOHO) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it compare to its competitors? We will compare Sotherly Hotels to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends and profitability.

Analyst Ratings

This is a summary of current ratings for Sotherly Hotels and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sotherly Hotels 0 2 1 0 2.33
Sotherly Hotels Competitors 232 925 894 19 2.34

Sotherly Hotels presently has a consensus price target of $7.00, suggesting a potential upside of 18.44%. As a group, “Hospitality REITs” companies have a potential upside of 7.19%. Given Sotherly Hotels’ higher possible upside, equities analysts plainly believe Sotherly Hotels is more favorable than its competitors.

Risk and Volatility

Sotherly Hotels has a beta of 0.79, meaning that its stock price is 21% less volatile than the S&P 500. Comparatively, Sotherly Hotels’ competitors have a beta of 1.00, meaning that their average stock price is 0% more volatile than the S&P 500.

Valuation and Earnings

This table compares Sotherly Hotels and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sotherly Hotels $152.55 million $34.37 million -590.41
Sotherly Hotels Competitors $1.10 billion $338.52 million -16.08

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

Institutional & Insider Ownership

26.5% of Sotherly Hotels shares are owned by institutional investors. Comparatively, 76.7% of shares of all “Hospitality REITs” companies are owned by institutional investors. 13.8% of Sotherly Hotels shares are owned by insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies 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.

Dividends

Sotherly Hotels pays an annual dividend of $0.42 per share and has a dividend yield of 7.1%. Sotherly Hotels pays out -4,195.8% of its earnings in the form of a dividend. 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. Sotherly Hotels is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Sotherly Hotels and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sotherly Hotels 1.59% 3.02% 0.60%
Sotherly Hotels Competitors 10.56% 3.64% 3.13%

Summary

Sotherly Hotels competitors beat Sotherly Hotels on 10 of the 14 factors compared.

About Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust. The Company is focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the southern United States. The Company operates through the hotel ownership segment. The Company conducts its operations through Sotherly Hotels LP, its Operating Partnership, of which the Company is the general partner. Its portfolio consists of approximately 10 full-service, mainly upscale and upper-upscale hotels located in over eight states with an aggregate of approximately 3,010 rooms and approximately 160,930 square feet of meeting space. All of these hotels are owned by subsidiaries of the Operating Partnership, approximately 10 operate under the Hilton, Crowne Plaza, DoubleTree and Sheraton brands, one is an independent hotel, and all are managed on a day to day basis by MHI Hotels Services, LLC, which does business as Chesapeake Hospitality.

Receive News & Ratings for Sotherly Hotels Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sotherly Hotels Inc. and related companies with MarketBeat.com's FREE daily email newsletter.