Summit Hotel Properties (NYSE:INN – Get Rating) and NNN REIT (NYSE:NNN – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Valuation and Earnings
This table compares Summit Hotel Properties and NNN REIT’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Summit Hotel Properties||$675.70 million||1.08||-$1.05 million||($0.09)||-75.33|
|NNN REIT||$773.05 million||10.10||$334.63 million||$1.92||22.32|
NNN REIT has higher revenue and earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Summit Hotel Properties has a beta of 2.01, meaning that its stock price is 101% more volatile than the S&P 500. Comparatively, NNN REIT has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Insider and Institutional Ownership
96.6% of Summit Hotel Properties shares are owned by institutional investors. Comparatively, 87.6% of NNN REIT shares are owned by institutional investors. 3.0% of Summit Hotel Properties shares are owned by insiders. Comparatively, 0.8% of NNN REIT shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Summit Hotel Properties and NNN REIT’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Summit Hotel Properties||0.94%||0.48%||0.22%|
This is a breakdown of current ratings and recommmendations for Summit Hotel Properties and NNN REIT, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Summit Hotel Properties||0||2||2||0||2.50|
Summit Hotel Properties presently has a consensus target price of $9.83, indicating a potential upside of 45.03%. NNN REIT has a consensus target price of $49.00, indicating a potential upside of 14.33%. Given Summit Hotel Properties’ higher possible upside, analysts plainly believe Summit Hotel Properties is more favorable than NNN REIT.
NNN REIT beats Summit Hotel Properties on 12 of the 17 factors compared between the two stocks.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a real estate investment trust, which operates as a self-managed hotel investment company. It focuses on owning premium-branded select-service hotels. Its hotels are located in corporate offices, retail centers, airports, state capitols, convention centers, universities, and leisure attractions. The company was founded on June 30, 2010 and is headquartered in Austin, TX.
About NNN REIT
NNN REIT, Inc. is a real estate investment trust, which engages in investing in properties subject to long-term net leases. It acquires, owns, invests in, and develops properties that are leased to retail tenants under long-term net leases and held for investment. The company was founded on August 8, 1984, and is headquartered in Orlando, FL.
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