Playa Hotels & Resorts (NASDAQ: PLYA) and Sunstone Hotel Investors (NYSE:SHO) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.
Institutional and Insider Ownership
83.3% of Playa Hotels & Resorts shares are owned by institutional investors. 3.7% of Playa Hotels & Resorts shares are owned by company insiders. Comparatively, 0.9% of Sunstone Hotel Investors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Playa Hotels & Resorts has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Sunstone Hotel Investors has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.
This table compares Playa Hotels & Resorts and Sunstone Hotel Investors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Playa Hotels & Resorts||-1.08%||6.46%||2.27%|
|Sunstone Hotel Investors||10.28%||4.41%||2.83%|
Valuation & Earnings
This table compares Playa Hotels & Resorts and Sunstone Hotel Investors’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Playa Hotels & Resorts||$559.54 million||2.13||-$240,000.00||$0.38||28.42|
|Sunstone Hotel Investors||$1.19 billion||3.11||$145.37 million||$1.22||13.49|
Sunstone Hotel Investors has higher revenue and earnings than Playa Hotels & Resorts. Sunstone Hotel Investors is trading at a lower price-to-earnings ratio than Playa Hotels & Resorts, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Playa Hotels & Resorts and Sunstone Hotel Investors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Playa Hotels & Resorts||0||0||3||0||3.00|
|Sunstone Hotel Investors||1||7||3||0||2.18|
Playa Hotels & Resorts currently has a consensus price target of $14.92, indicating a potential upside of 38.12%. Sunstone Hotel Investors has a consensus price target of $16.81, indicating a potential upside of 2.58%. Given Playa Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Playa Hotels & Resorts is more favorable than Sunstone Hotel Investors.
Sunstone Hotel Investors pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Playa Hotels & Resorts does not pay a dividend. Sunstone Hotel Investors pays out 16.4% of its earnings in the form of a dividend.
Sunstone Hotel Investors beats Playa Hotels & Resorts on 8 of the 15 factors compared between the two stocks.
Playa Hotels & Resorts Company Profile
Playa Hotels & Resorts N.V. owns, operates, develops, and manages all-inclusive resorts in prime beachfront locations in various vacation destinations in Mexico and the Caribbean. The company owns, operates, and manages resorts under the Hyatt Ziva, Panama Jack, Dreams, Sanctuary, Hyatt Zilara, THE Royal, and Secrets brand names. As of December 31, 2017, it owned a portfolio consisting of 13 resorts comprising 6,130 rooms located in Mexico, the Dominican Republic, and Jamaica. Playa Hotels & Resorts N.V. is headquartered in Fairfax, Virginia.
Sunstone Hotel Investors Company Profile
Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of May 7, 2018 has interests in 25 hotels comprised of 12,450 rooms. Sunstone's hotels are primarily in the urban and resort upper upscale segment and are predominantly operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. For further information, please visit Sunstone's website at www.sunstonehotels.com.
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