Contrasting Summit Hotel Properties (NYSE:INN) & Ryman Hospitality Properties (NYSE:RHP)

Summit Hotel Properties (NYSE:INN) and Ryman Hospitality Properties (NYSE:RHP) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Valuation and Earnings

This table compares Summit Hotel Properties and Ryman Hospitality Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$736.15 million	0.88	-$7.69 million	($0.23)	-26.26
Ryman Hospitality Properties	$2.74 billion	2.97	$243.43 million	$4.09	31.59

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

Risk & Volatility

Summit Hotel Properties has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Ryman Hospitality Properties has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Summit Hotel Properties and Ryman Hospitality Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	1	3	2	0	2.17
Ryman Hospitality Properties	0	0	12	0	3.00

Summit Hotel Properties presently has a consensus target price of $5.40, suggesting a potential downside of 10.60%. Ryman Hospitality Properties has a consensus target price of $131.27, suggesting a potential upside of 1.60%. Given Ryman Hospitality Properties’ stronger consensus rating and higher probable upside, analysts clearly believe Ryman Hospitality Properties is more favorable than Summit Hotel Properties.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	-0.99%	-0.60%	-0.26%
Ryman Hospitality Properties	9.91%	34.54%	4.39%

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.3%. Ryman Hospitality Properties pays an annual dividend of $4.80 per share and has a dividend yield of 3.7%. Summit Hotel Properties pays out -139.1% of its earnings in the form of a dividend. Ryman Hospitality Properties pays out 117.4% 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 has raised its dividend for 2 consecutive years and Ryman Hospitality Properties has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

96.5% of Summit Hotel Properties shares are owned by institutional investors. Comparatively, 94.5% of Ryman Hospitality Properties shares are owned by institutional investors. 4.3% of Summit Hotel Properties shares are owned by insiders. Comparatively, 3.2% of Ryman Hospitality Properties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Ryman Hospitality Properties beats Summit Hotel Properties on 11 of the 16 factors compared between the two stocks.

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.

About Ryman Hospitality Properties

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company's holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company's hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company's financial results.