Apple Hospitality REIT (NYSE:APLE) versus Summit Hotel Properties (NYSE:INN) Financial Survey

Apple Hospitality REIT (NYSE:APLE) and Summit Hotel Properties (NYSE:INN) are both real estate companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Apple Hospitality REIT and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Apple Hospitality REIT	12.17%	5.56%	3.58%
Summit Hotel Properties	-0.99%	-0.60%	-0.26%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Apple Hospitality REIT and Summit Hotel Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Apple Hospitality REIT	0	7	3	0	2.30
Summit Hotel Properties	2	1	2	0	2.00

Apple Hospitality REIT presently has a consensus target price of $17.31, indicating a potential downside of 6.57%. Summit Hotel Properties has a consensus target price of $5.40, indicating a potential downside of 23.94%. Given Apple Hospitality REIT’s stronger consensus rating and higher possible upside, equities analysts plainly believe Apple Hospitality REIT is more favorable than Summit Hotel Properties.

Risk & Volatility

Apple Hospitality REIT has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

Dividends

Apple Hospitality REIT pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.5%. Apple Hospitality REIT pays out 129.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties pays out -139.1% of its earnings in the form of a dividend. Summit Hotel Properties has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

89.7% of Apple Hospitality REIT shares are owned by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are owned by institutional investors. 6.9% of Apple Hospitality REIT shares are owned by insiders. Comparatively, 4.3% of Summit Hotel Properties shares are owned by 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 Apple Hospitality REIT and Summit Hotel Properties”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Apple Hospitality REIT	$1.41 billion	3.10	$175.36 million	$0.74	25.04
Summit Hotel Properties	$736.15 million	1.04	-$7.69 million	($0.23)	-30.87

Apple Hospitality REIT has higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than Apple Hospitality REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Apple Hospitality REIT beats Summit Hotel Properties on 13 of the 17 factors compared between the two stocks.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. Apple Hospitality's portfolio consists of 223 hotels with more than 29,400 guest rooms located in 87 markets throughout 37 states as well as one property leased to third parties. Concentrated with industry-leading brands, the Company's hotel portfolio consists of 99 Marriott-branded hotels, 119 Hilton-branded hotels and five Hyatt-branded hotels.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of November 1, 2023, the Company’s portfolio consisted of 101 assets, 57 of which are wholly owned, with a total of 15,035 guestrooms located in 24 states.