Head-To-Head Review: Host Hotels & Resorts (NASDAQ:HST) versus InnSuites Hospitality Trust (NYSE:IHT)

InnSuites Hospitality Trust (NYSE:IHT) and Host Hotels & Resorts (NASDAQ:HST) are both real estate companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Profitability

This table compares InnSuites Hospitality Trust and Host Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%
Host Hotels & Resorts	16.51%	15.53%	7.83%

Risk and Volatility

InnSuites Hospitality Trust has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Host Hotels & Resorts has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.2%. Host Hotels & Resorts pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. InnSuites Hospitality Trust pays out -14.3% of its earnings in the form of a dividend. Host Hotels & Resorts pays out 53.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Host Hotels & Resorts has increased its dividend for 2 consecutive years. Host Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. Comparatively, 98.5% of Host Hotels & Resorts shares are held by institutional investors. 68.1% of InnSuites Hospitality Trust shares are held by company insiders. Comparatively, 1.5% of Host Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares InnSuites Hospitality Trust and Host Hotels & Resorts”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.56 million	2.12	$200,000.00	($0.14)	-12.14
Host Hotels & Resorts	$6.22 billion	2.56	$765.00 million	$1.50	15.53

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for InnSuites Hospitality Trust and Host Hotels & Resorts, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	0.00
Host Hotels & Resorts	0	6	9	1	2.69

Host Hotels & Resorts has a consensus price target of $24.27, suggesting a potential upside of 4.19%. Given Host Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Host Hotels & Resorts is more favorable than InnSuites Hospitality Trust.

Summary

Host Hotels & Resorts beats InnSuites Hospitality Trust on 16 of the 18 factors compared between the two stocks.

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.

About Host Hotels & Resorts

Host Hotels & Resorts, Inc. is a real estate investment trust, which engages in the management of luxury and upper-upscale hotels. It operates through the following geographical segments: United States, Brazil, and Canada. The company was founded in 1927 and is headquartered in Bethesda, MD.