Critical Review: VICI Properties (VICI) & Summit Hotel Properties (INN)
VICI Properties (NYSE: VICI) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.
Valuation & Earnings
This table compares VICI Properties and Summit Hotel Properties’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Summit Hotel Properties||$515.38 million||2.72||$99.21 million||$0.81||16.62|
Institutional & Insider Ownership
98.8% of Summit Hotel Properties shares are owned by institutional investors. 1.7% of Summit Hotel Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares VICI Properties and Summit Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Summit Hotel Properties||19.25%||8.41%||4.93%|
This is a summary of recent ratings and recommmendations for VICI Properties and Summit Hotel Properties, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Summit Hotel Properties||1||1||7||0||2.67|
VICI Properties currently has a consensus price target of $21.75, indicating a potential upside of 10.80%. Summit Hotel Properties has a consensus price target of $16.44, indicating a potential upside of 22.12%. Given Summit Hotel Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Summit Hotel Properties is more favorable than VICI Properties.
Summit Hotel Properties pays an annual dividend of $0.72 per share and has a dividend yield of 5.3%. VICI Properties does not pay a dividend. Summit Hotel Properties pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VICI Properties has raised its dividend for 4 consecutive years.
Summit Hotel Properties beats VICI Properties on 10 of the 12 factors compared between the two stocks.
VICI Properties Company Profile
VICI Properties Inc. is a real estate investment trust. The Company is primarily engaged in the business of owning, acquiring and developing gaming, hospitality and entertainment destinations. It operates through two segments: real property business and golf course business. The real property business segment consists of leased real property. The golf course business segment consists of four golf courses. Its golf courses include the Cascata golf course in Boulder City, Nevada, the Rio Secco golf course in Henderson, Nevada, the Grand Bear golf course in Biloxi, Mississippi, and the Chariot Run golf course in Elizabeth, Indiana.
Summit Hotel Properties Company Profile
Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 83 hotels with a total of 12,242 guestrooms located in 26 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 89% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.
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