Summit Hotel Properties (NYSE:INN) vs. National Health Investors (NYSE:NHI) Head-To-Head Comparison

Summit Hotel Properties (NYSE:INN) and National Health Investors (NYSE:NHI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Risk and Volatility

Summit Hotel Properties has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, National Health Investors has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Summit Hotel Properties and National Health Investors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	2	2	1	0	1.80
National Health Investors	0	2	4	1	2.86

Summit Hotel Properties currently has a consensus price target of $5.00, indicating a potential downside of 14.60%. National Health Investors has a consensus price target of $86.67, indicating a potential upside of 21.70%. Given National Health Investors’ stronger consensus rating and higher probable upside, analysts clearly believe National Health Investors is more favorable than Summit Hotel Properties.

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.5%. National Health Investors pays an annual dividend of $3.68 per share and has a dividend yield of 5.2%. Summit Hotel Properties pays out -110.3% of its earnings in the form of a dividend. National Health Investors pays out 118.7% 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 has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Summit Hotel Properties and National Health Investors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$729.47 million	0.87	-$7.69 million	($0.29)	-20.19
National Health Investors	$375.63 million	9.19	$142.18 million	$3.10	22.97

National Health Investors has lower revenue, but higher earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than National Health Investors, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 62.5% of National Health Investors shares are held by institutional investors. 4.3% of Summit Hotel Properties shares are held by insiders. Comparatively, 2.7% of National Health Investors shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Summit Hotel Properties and National Health Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	-1.75%	-1.03%	-0.46%
National Health Investors	36.86%	9.82%	5.35%

Summary

National Health Investors beats Summit Hotel Properties on 11 of the 18 factors compared between the two stocks.

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.

About National Health Investors

Incorporated in 1991, National Health Investors, Inc. (NYSE:NHI) is a real estate investment trust specializing in sale, leasebacks, joint-ventures, senior housing operating partnerships, and mortgage and mezzanine financing of need-driven and discretionary senior housing and medical investments. NHI's portfolio consists of independent living, assisted living and memory care communities, entrance-fee retirement communities, skilled nursing facilities, and specialty hospitals.