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

Profitability

This table compares Sunstone Hotel Investors and its peers’ 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 10.37% 3.51% 3.07%

Dividends

Sunstone Hotel Investors pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. 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.

Insider & Institutional Ownership

76.7% of shares of all “Hospitality REITs” companies are held by institutional investors. 0.8% of Sunstone Hotel Investors shares are held by insiders. Comparatively, 5.8% of shares of all “Hospitality REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

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

Earnings and Valuation

This table compares Sunstone Hotel Investors and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sunstone Hotel Investors $1.19 billion $344.05 million 20.54
Sunstone Hotel Investors Competitors $1.10 billion $338.52 million -15.75

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunstone Hotel Investors 3 5 2 0 1.90
Sunstone Hotel Investors Competitors 232 924 894 19 2.34

Sunstone Hotel Investors presently has a consensus price target of $15.56, suggesting a potential downside of 2.90%. As a group, “Hospitality REITs” companies have a potential upside of 6.82%. Given Sunstone Hotel Investors’ peers stronger consensus rating and higher possible upside, analysts plainly believe Sunstone Hotel Investors has less favorable growth aspects than its peers.

Summary

Sunstone Hotel Investors beats its peers 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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