Head to Head Contrast: Sotherly Hotels (NASDAQ:SOHOO) vs. Summit Hotel Properties (NYSE:INN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sotherly Hotels	N/A	N/A	N/A
Summit Hotel Properties	-0.27%	-0.14%	-0.06%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Sotherly Hotels and Summit Hotel Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sotherly Hotels	0	0	0	0	N/A
Summit Hotel Properties	0	2	2	0	2.50

Summit Hotel Properties has a consensus price target of $9.83, suggesting a potential upside of 69.25%. Given Summit Hotel Properties’ higher possible upside, analysts plainly believe Summit Hotel Properties is more favorable than Sotherly Hotels.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sotherly Hotels	$173.06 million	N/A	N/A	N/A	N/A
Summit Hotel Properties	$675.70 million	0.93	-$1.05 million	($0.17)	-34.17

Sotherly Hotels has higher earnings, but lower revenue than Summit Hotel Properties.

Insider and Institutional Ownership

95.1% of Summit Hotel Properties shares are held by institutional investors. 3.0% of Summit Hotel Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Sotherly Hotels pays an annual dividend of $1.97 per share and has a dividend yield of 8.3%. Summit Hotel Properties pays an annual dividend of $0.24 per share and has a dividend yield of 4.1%. Summit Hotel Properties pays out -141.2% of its earnings in the form of a dividend. Summit Hotel Properties has raised its dividend for 1 consecutive years.

Summary

Summit Hotel Properties beats Sotherly Hotels on 7 of the 11 factors compared between the two stocks.

About Sotherly Hotels

Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.

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 August 2, 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.