American Hotel Income Properties REIT (OTCMKTS:AHOTF – Get Free Report) and Sunstone Hotel Investors (NYSE:SHO – Get Free Report) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Profitability
This table compares American Hotel Income Properties REIT and Sunstone Hotel Investors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Hotel Income Properties REIT | N/A | N/A | N/A |
| Sunstone Hotel Investors | 3.84% | 2.27% | 1.25% |
Insider and Institutional Ownership
10.3% of American Hotel Income Properties REIT shares are owned by institutional investors. Comparatively, 99.4% of Sunstone Hotel Investors shares are owned by institutional investors. 1.4% of Sunstone Hotel Investors shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Analyst Recommendations
This is a breakdown of recent recommendations for American Hotel Income Properties REIT and Sunstone Hotel Investors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Hotel Income Properties REIT | 0 | 0 | 0 | 0 | 0.00 |
| Sunstone Hotel Investors | 1 | 6 | 0 | 1 | 2.12 |
Sunstone Hotel Investors has a consensus price target of $10.67, suggesting a potential downside of 8.63%. Given Sunstone Hotel Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Sunstone Hotel Investors is more favorable than American Hotel Income Properties REIT.
Valuation and Earnings
This table compares American Hotel Income Properties REIT and Sunstone Hotel Investors”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Hotel Income Properties REIT | N/A | N/A | N/A | $0.06 | 5.86 |
| Sunstone Hotel Investors | $960.13 million | 2.27 | $24.57 million | $0.11 | 106.13 |
Sunstone Hotel Investors has higher revenue and earnings than American Hotel Income Properties REIT. American Hotel Income Properties REIT 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.
Summary
Sunstone Hotel Investors beats American Hotel Income Properties REIT on 13 of the 14 factors compared between the two stocks.
About American Hotel Income Properties REIT
American Hotel Income Properties REIT LP (TSX: HOT.UN, TSX: HOT.U, TSX: HOT.DB.V), or AHIP, is a limited partnership formed to invest in hotel real estate properties across the United States. AHIP’s portfolio of premium branded, select-service hotels are located in secondary metropolitan markets that benefit from diverse and stable demand. AHIP hotels operate under brands affiliated with Marriott, Hilton, IHG and Choice Hotels through license agreements. AHIP’s long-term objectives are to build on its proven track record of successful investment, deliver monthly U.S. dollar denominated distributions to unitholders, and generate value through the continued growth of its diversified hotel portfolio.
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.
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