Federal Realty Investment Trust (NYSE:FRT) & Summit Hotel Properties (NYSE:INN) Head to Head Review

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

Profitability

This table compares Federal Realty Investment Trust and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Realty Investment Trust	24.38%	9.89%	3.48%
Summit Hotel Properties	3.41%	1.87%	0.86%

Risk & Volatility

Federal Realty Investment Trust has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Valuation & Earnings

This table compares Federal Realty Investment Trust and Summit Hotel Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Realty Investment Trust	$1.20 billion	7.52	$295.21 million	$3.43	30.77
Summit Hotel Properties	$731.78 million	0.96	-$12.11 million	$0.18	35.97

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

Dividends

Federal Realty Investment Trust pays an annual dividend of $4.40 per share and has a dividend yield of 4.2%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.9%. Federal Realty Investment Trust pays out 128.3% 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 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Federal Realty Investment Trust has increased its dividend for 58 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Federal Realty Investment Trust and Summit Hotel Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Realty Investment Trust	0	2	11	0	2.85
Summit Hotel Properties	0	0	0	0	0.00

Federal Realty Investment Trust presently has a consensus target price of $121.85, indicating a potential upside of 15.46%. Given Federal Realty Investment Trust’s stronger consensus rating and higher possible upside, analysts plainly believe Federal Realty Investment Trust is more favorable than Summit Hotel Properties.

Institutional & Insider Ownership

93.9% of Federal Realty Investment Trust shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 1.0% of Federal Realty Investment Trust shares are held by company insiders. Comparatively, 3.4% 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.

Summary

Federal Realty Investment Trust beats Summit Hotel Properties on 12 of the 17 factors compared between the two stocks.

About Federal Realty Investment Trust

Federal Realty Investment Trust is an equity real estate investment trust, which engages in the provision of ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities where demand exceeds supply in strategically selected metropolitan markets. The company was founded in 1962 and is headquartered in North Bethesda, MD.

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.