Summit Hotel Properties (INN) vs. Its Rivals Head-To-Head Survey

Summit Hotel Properties (NYSE:INN) is one of 24 publicly-traded companies in the “Hotel & Resort REITs” industry, but how does it compare to its competitors? We will compare Summit Hotel Properties to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, analyst recommendations, profitability and risk.

Profitability

This table compares Summit Hotel Properties and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	-0.49%	-0.31%	-0.13%
Summit Hotel Properties Competitors	0.15%	3.67%	1.13%

Volatility and Risk

Summit Hotel Properties has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Summit Hotel Properties’ competitors have a beta of 0.97, indicating that their average stock price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Summit Hotel Properties and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Summit Hotel Properties	$744.74 million	-$7.69 million	-36.71
Summit Hotel Properties Competitors	$1.42 billion	$29.80 million	55.29

Summit Hotel Properties’ competitors have higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Summit Hotel Properties and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	1	1	2	0	2.25
Summit Hotel Properties Competitors	539	1742	1284	33	2.23

Summit Hotel Properties currently has a consensus target price of $6.00, suggesting a potential downside of 13.98%. As a group, “Hotel & Resort REITs” companies have a potential upside of 0.81%. Given Summit Hotel Properties’ competitors higher probable upside, analysts plainly believe Summit Hotel Properties has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 70.5% of shares of all “Hotel & Resort REITs” companies are held by institutional investors. 4.3% of Summit Hotel Properties shares are held by insiders. Comparatively, 8.9% of shares of all “Hotel & Resort REITs” companies are held 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.

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.6%. Summit Hotel Properties pays out -168.4% of its earnings in the form of a dividend. As a group, “Hotel & Resort REITs” companies pay a dividend yield of 3.9% and pay out -33.6% of their earnings in the form of a dividend. Summit Hotel Properties has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Summary

Summit Hotel Properties competitors beat Summit Hotel Properties on 9 of the 15 factors compared.

Summit Hotel Properties Company Profile

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.