Head to Head Review: Summit Hotel Properties (INN) vs. The Competition

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

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.6%. 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 3.9% and pay out -33.6% of their earnings in the form of a dividend. Summit Hotel Properties has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional and Insider 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 company insiders. Comparatively, 8.9% of shares of all “Hotel & Resort REITs” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Summit Hotel Properties and its rivals, as provided by MarketBeat.

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 1742 1284 33 2.23

Summit Hotel Properties currently has a consensus price target of $6.00, suggesting a potential downside of 13.98%. As a group, “Hotel & Resort REITs” companies have a potential upside of 0.81%. Given Summit Hotel Properties’ rivals higher possible upside, analysts plainly believe Summit Hotel Properties has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Summit Hotel Properties and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Summit Hotel Properties $744.74 million -$7.69 million -36.71
Summit Hotel Properties Competitors $1.42 billion $29.80 million 55.29

Summit Hotel Properties’ rivals have higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

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

Profitability

This table compares Summit Hotel Properties and its rivals’ 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 0.15% 3.67% 1.13%

Summary

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

Summit Hotel Properties Company Profile

(Get Free Report)

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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