Retail Opportunity Investments (NASDAQ:ROIC) & InnSuites Hospitality Trust (NYSE:IHT) Critical Review

Retail Opportunity Investments (NASDAQ:ROIC) and InnSuites Hospitality Trust (NYSE:IHT) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

This table compares Retail Opportunity Investments and InnSuites Hospitality Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Retail Opportunity Investments	17.38%	4.32%	1.96%
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Retail Opportunity Investments and InnSuites Hospitality Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Retail Opportunity Investments	1	6	0	0	1.86
InnSuites Hospitality Trust	0	0	0	0	0.00

Retail Opportunity Investments currently has a consensus target price of $16.20, suggesting a potential downside of 7.48%. Given Retail Opportunity Investments’ stronger consensus rating and higher probable upside, research analysts plainly believe Retail Opportunity Investments is more favorable than InnSuites Hospitality Trust.

Dividends

Retail Opportunity Investments pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Retail Opportunity Investments pays out 130.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. InnSuites Hospitality Trust pays out -12.5% of its earnings in the form of a dividend.

Risk and Volatility

Retail Opportunity Investments has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, InnSuites Hospitality Trust has a beta of 0.11, meaning that its stock price is 89% less volatile than the S&P 500.

Valuation & Earnings

This table compares Retail Opportunity Investments and InnSuites Hospitality Trust”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Retail Opportunity Investments	$327.73 million	6.89	$34.53 million	$0.46	38.07
InnSuites Hospitality Trust	$7.59 million	2.60	$200,000.00	($0.16)	-14.06

Retail Opportunity Investments has higher revenue and earnings than InnSuites Hospitality Trust. InnSuites Hospitality Trust is trading at a lower price-to-earnings ratio than Retail Opportunity Investments, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.2% of Retail Opportunity Investments shares are owned by institutional investors. Comparatively, 2.5% of InnSuites Hospitality Trust shares are owned by institutional investors. 3.0% of Retail Opportunity Investments shares are owned by company insiders. Comparatively, 73.9% of InnSuites Hospitality Trust shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Retail Opportunity Investments beats InnSuites Hospitality Trust on 13 of the 15 factors compared between the two stocks.

About Retail Opportunity Investments

Retail Opportunity Investments Corp. (Nasdaq: ROIC), is a fully integrated, self-managed real estate investment trust (REIT) that specializes in the acquisition, ownership and management of grocery-anchored shopping centers located in densely populated, metropolitan markets across the West Coast. As of December 31, 2023, ROIC owned 94 shopping centers encompassing approximately 10.6 million square feet. ROIC is the largest publicly-traded, grocery-anchored shopping center REIT focused exclusively on the West Coast. ROIC is a member of the S&P SmallCap 600 Index and has investment-grade corporate debt ratings from Moody's Investor Services, S&P Global Ratings and Fitch Ratings, Inc.

About InnSuites Hospitality Trust

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.