Sunstone Hotel Investors (NYSE:SHO) versus American Hotel Income Properties REIT (OTCMKTS:AHOTF) Head-To-Head Survey

Sunstone Hotel Investors (NYSE:SHO) and American Hotel Income Properties REIT (OTCMKTS:AHOTF) are both real estate companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Valuation & Earnings

This table compares Sunstone Hotel Investors and American Hotel Income Properties REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sunstone Hotel Investors	$960.13 million	2.27	$24.57 million	$0.11	106.13
American Hotel Income Properties REIT	N/A	N/A	N/A	$0.06	5.86

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Sunstone Hotel Investors and American Hotel Income Properties REIT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sunstone Hotel Investors	1	6	0	1	2.12
American Hotel Income Properties REIT	0	0	0	0	0.00

Sunstone Hotel Investors presently has a consensus target price of $10.67, suggesting a potential downside of 8.63%. Given Sunstone Hotel Investors’ stronger consensus rating and higher probable upside, research analysts plainly believe Sunstone Hotel Investors is more favorable than American Hotel Income Properties REIT.

Profitability

This table compares Sunstone Hotel Investors and American Hotel Income Properties REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sunstone Hotel Investors	3.84%	2.27%	1.25%
American Hotel Income Properties REIT	N/A	N/A	N/A

Dividends

Sunstone Hotel Investors pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%. American Hotel Income Properties REIT pays an annual dividend of $0.76 per share and has a dividend yield of 212.5%. Sunstone Hotel Investors pays out 327.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Hotel Income Properties REIT pays out 1,245.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunstone Hotel Investors has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

99.4% of Sunstone Hotel Investors shares are owned by institutional investors. Comparatively, 10.3% of American Hotel Income Properties REIT 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Sunstone Hotel Investors beats American Hotel Income Properties REIT on 13 of the 14 factors compared between the two stocks.

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.

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.