Sunstone Hotel Investors (SHO) vs. Its Rivals Head-To-Head Comparison

Sunstone Hotel Investors (NYSE: SHO) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it contrast to its competitors? We will compare Sunstone Hotel Investors to related companies based on the strength of its institutional ownership, valuation, dividends, profitability, risk, earnings and analyst recommendations.

Dividends

Sunstone Hotel Investors pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Sunstone Hotel Investors pays out 25.6% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.5% and pay out 135.3% of their earnings in the form of a dividend.

Volatility and Risk

Sunstone Hotel Investors has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Sunstone Hotel Investors’ competitors have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sunstone Hotel Investors and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunstone Hotel Investors 3 5 2 0 1.90
Sunstone Hotel Investors Competitors 232 924 893 19 2.34

Sunstone Hotel Investors presently has a consensus price target of $15.56, suggesting a potential downside of 2.10%. As a group, “Hospitality REITs” companies have a potential upside of 7.40%. Given Sunstone Hotel Investors’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Sunstone Hotel Investors has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Sunstone Hotel Investors and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sunstone Hotel Investors $1.19 billion $344.05 million 20.37
Sunstone Hotel Investors Competitors $1.09 billion $355.70 million -15.98

Sunstone Hotel Investors has higher revenue, but lower earnings than its competitors. Sunstone Hotel Investors is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

76.7% of shares of all “Hospitality REITs” companies are owned by institutional investors. 0.8% of Sunstone Hotel Investors shares are owned by insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies are owned 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.

Profitability

This table compares Sunstone Hotel Investors and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunstone Hotel Investors 15.41% 7.70% 4.91%
Sunstone Hotel Investors Competitors 10.85% 3.81% 3.25%

Summary

Sunstone Hotel Investors competitors beat Sunstone Hotel Investors on 8 of the 15 factors compared.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. operates as a self-managed and self-administered real estate investment trust. The Company’s primary business is to acquire, own, asset manage and renovate primarily urban and resort upper upscale hotels in the United States. It operates through hotel ownership segment. It owns primarily urban and resort upper upscale hotels in the United States. The Company’s hotels are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. As of July 26, 2017 the Company has interest in 27 hotels, including 13,202 rooms. The Company’s hotels are located in gateway markets, such as Boston, New York, Washington, District of Columbia (DC)/Baltimore, Chicago, Orlando, New Orleans, San Francisco, Los Angeles, Orange County and San Diego.

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