Summit Hotel Properties (NYSE:INN) & Apple Hospitality REIT (NYSE:APLE) Head-To-Head Survey

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

Analyst Ratings

This is a summary of recent ratings and price targets for Summit Hotel Properties and Apple Hospitality REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	1	1	2	0	2.25
Apple Hospitality REIT	0	7	3	0	2.30

Summit Hotel Properties currently has a consensus target price of $6.00, indicating a potential downside of 13.98%. Apple Hospitality REIT has a consensus target price of $17.31, indicating a potential downside of 8.17%. Given Apple Hospitality REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Apple Hospitality REIT is more favorable than Summit Hotel Properties.

Institutional & Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 89.7% of Apple Hospitality REIT shares are held by institutional investors. 4.3% of Summit Hotel Properties shares are held by insiders. Comparatively, 6.9% of Apple Hospitality REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Summit Hotel Properties has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, Apple Hospitality REIT has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares Summit Hotel Properties and Apple Hospitality REIT’s 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%
Apple Hospitality REIT	12.17%	5.56%	3.58%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$729.47 million	1.03	-$7.69 million	($0.19)	-36.71
Apple Hospitality REIT	$1.41 billion	3.15	$175.36 million	$0.74	25.48

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

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.6%. Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.1%. Summit Hotel Properties pays out -168.4% of its earnings in the form of a dividend. Apple Hospitality REIT pays out 129.7% 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.

Summary

Apple Hospitality REIT beats Summit Hotel Properties on 13 of the 17 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 Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 223 hotels with more than 29,400 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.