Kilroy Realty (NYSE:KRC – Get Free Report) and Summit Hotel Properties (NYSE:INN – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Dividends
Kilroy Realty pays an annual dividend of $2.16 per share and has a dividend yield of 5.7%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.3%. Kilroy Realty pays out 118.7% 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 pays out -110.3% of its earnings in the form of a dividend. Summit Hotel Properties has increased its dividend for 2 consecutive years.
Institutional and Insider Ownership
94.2% of Kilroy Realty shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 0.8% of Kilroy Realty shares are held by insiders. Comparatively, 4.3% of Summit Hotel Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kilroy Realty | $1.11 billion | 3.97 | $276.12 million | $1.82 | 20.89 |
| Summit Hotel Properties | $729.47 million | 0.89 | -$7.69 million | ($0.29) | -20.67 |
Kilroy Realty has higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than Kilroy Realty, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Kilroy Realty has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Profitability
This table compares Kilroy Realty and Summit Hotel Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kilroy Realty | 19.59% | 3.89% | 2.00% |
| Summit Hotel Properties | -1.75% | -1.03% | -0.46% |
Analyst Ratings
This is a summary of current ratings for Kilroy Realty and Summit Hotel Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kilroy Realty | 2 | 10 | 4 | 0 | 2.13 |
| Summit Hotel Properties | 2 | 2 | 2 | 0 | 2.00 |
Kilroy Realty currently has a consensus price target of $37.38, indicating a potential downside of 1.68%. Summit Hotel Properties has a consensus price target of $5.00, indicating a potential downside of 16.60%. Given Kilroy Realty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kilroy Realty is more favorable than Summit Hotel Properties.
Summary
Kilroy Realty beats Summit Hotel Properties on 12 of the 17 factors compared between the two stocks.
About Kilroy Realty
Kilroy Realty Corporation (NYSE: KRC, the company, Kilroy) is a leading U.S. landlord and developer, with operations in San Diego, Greater Los Angeles, the San Francisco Bay Area, Greater Seattle and Austin. The company has earned global recognition for sustainability, building operations, innovation and design. As a pioneer and innovator in the creation of a more sustainable real estate industry, the company's approach to modern business environments helps drive creativity and productivity for some of the world's leading technology, entertainment, life science and business services companies. The company is a publicly traded real estate investment trust (REIT) and member of the S&P MidCap 400 Index with more than seven decades of experience developing, acquiring and managing office, life science and mixed-use projects. As of December 31, 2023, Kilroy's stabilized portfolio totaled approximately 17.0 million square feet of primarily office and life science space that was 85.0% occupied and 86.4% leased. The company also had approximately 1,000 residential units in Hollywood and San Diego, which had a quarterly average occupancy of 92.5%. In addition, the company had two in-process life science redevelopment projects totaling approximately 100,000 square feet with total estimated redevelopment costs of $80.0 million and one approximately 875,000 square foot in-process development project with a total estimated investment of $1.0 billion.
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.
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