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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Sunstone Hotel Investors and its rivals, as provided 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 233 927 896 19 2.34

Sunstone Hotel Investors presently has a consensus price target of $15.56, indicating a potential downside of 1.67%. As a group, “Hospitality REITs” companies have a potential upside of 6.35%. Given Sunstone Hotel Investors’ rivals stronger consensus rating and higher probable upside, analysts clearly believe Sunstone Hotel Investors has less favorable growth aspects than its rivals.

Risk & Volatility

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

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Sunstone Hotel Investors $1.19 billion $344.05 million 20.28
Sunstone Hotel Investors Competitors $1.09 billion $355.70 million -15.69

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

Profitability

This table compares Sunstone Hotel Investors and its rivals’ 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 1.3%. 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 135.4% of their earnings in the form of a dividend.

Insider and 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 large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

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

Sunstone Hotel Investors Company Profile

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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