BRAEMAR HOTELS & RESORTS (NYSE:BHR) versus Sunstone Hotel Investors (NYSE:SHO) Head-To-Head Review

Sunstone Hotel Investors (NYSE:SHO) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) are both real estate companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

99.4% of Sunstone Hotel Investors shares are owned by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. 1.4% of Sunstone Hotel Investors shares are owned by insiders. Comparatively, 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Sunstone Hotel Investors has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, BRAEMAR HOTELS & RESORTS has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunstone Hotel Investors	$960.13 million	2.11	$24.57 million	$0.22	49.60
BRAEMAR HOTELS & RESORTS	$704.02 million	0.20	-$22.32 million	($0.73)	-2.79

Sunstone Hotel Investors has higher revenue and earnings than BRAEMAR HOTELS & RESORTS. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Sunstone Hotel Investors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunstone Hotel Investors	5.30%	3.21%	1.75%
BRAEMAR HOTELS & RESORTS	-0.45%	-1.92%	-0.17%

Analyst Ratings

This is a breakdown of current recommendations for Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunstone Hotel Investors	1	5	1	1	2.25
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67

Sunstone Hotel Investors presently has a consensus target price of $10.67, indicating a potential downside of 2.24%. BRAEMAR HOTELS & RESORTS has a consensus target price of $2.50, indicating a potential upside of 22.85%. Given BRAEMAR HOTELS & RESORTS’s higher possible upside, analysts clearly believe BRAEMAR HOTELS & RESORTS is more favorable than Sunstone Hotel Investors.

Summary

Sunstone Hotel Investors beats BRAEMAR HOTELS & RESORTS on 13 of the 15 factors compared between the two stocks.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.

About BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).