Summit Hotel Properties (NYSE:INN) versus Public Storage (NYSE:PSA) Financial Analysis

Public Storage (NYSE:PSA) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Institutional & Insider Ownership

78.8% of Public Storage shares are owned by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are owned by institutional investors. 11.1% of Public Storage shares are owned by insiders. Comparatively, 3.4% of Summit Hotel Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Public Storage pays an annual dividend of $12.00 per share and has a dividend yield of 4.2%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 7.1%. Public Storage pays out 124.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties pays out -200.0% of its earnings in the form of a dividend. Summit Hotel Properties has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Public Storage has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Public Storage and Summit Hotel Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Public Storage	0	12	4	2	2.44
Summit Hotel Properties	3	1	1	0	1.60

Public Storage presently has a consensus target price of $306.63, suggesting a potential upside of 6.11%. Summit Hotel Properties has a consensus target price of $5.00, suggesting a potential upside of 11.36%. Given Summit Hotel Properties’ higher probable upside, analysts plainly believe Summit Hotel Properties is more favorable than Public Storage.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Public Storage	39.53%	36.09%	9.46%
Summit Hotel Properties	0.04%	0.02%	0.01%

Valuation & Earnings

This table compares Public Storage and Summit Hotel Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Public Storage	$4.70 billion	10.80	$2.07 billion	$9.63	30.01
Summit Hotel Properties	$731.78 million	0.67	$41.02 million	($0.16)	-28.06

Public Storage has higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than Public Storage, indicating that it is currently the more affordable of the two stocks.

Summary

Public Storage beats Summit Hotel Properties on 12 of the 18 factors compared between the two stocks.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of November 1, 2023, the Company’s portfolio consisted of 101 assets, 57 of which are wholly owned, with a total of 15,035 guestrooms located in 24 states.