Head to Head Survey: Summit Hotel Properties (INN) & The Competition

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

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.3%. 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 3.7% and pay out 1,087.1% of their earnings in the form of a dividend. Summit Hotel Properties has increased its dividend for 2 consecutive years. Summit Hotel Properties is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Summit Hotel Properties and its competitors’ 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%	4.00%	1.24%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Summit Hotel Properties and its competitors, as provided 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	539	1748	1293	33	2.23

Summit Hotel Properties presently has a consensus price target of $6.00, suggesting a potential downside of 19.08%. As a group, “Hotel & Resort REITs” companies have a potential downside of 2.91%. Given Summit Hotel Properties’ competitors higher possible upside, analysts plainly believe Summit Hotel Properties has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Summit Hotel Properties and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Summit Hotel Properties	$729.47 million	-$7.69 million	-39.03
Summit Hotel Properties Competitors	$1.38 billion	$29.80 million	50.66

Summit Hotel Properties’ competitors have higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties 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.

Insider & Institutional 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

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’ competitors have a beta of 0.97, meaning that their average stock price is 3% less volatile than the S&P 500.

Summary

Summit Hotel Properties competitors beat Summit Hotel Properties on 9 of the 15 factors compared.

Summit Hotel Properties Company Profile

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.