Comparing FrontView REIT (NYSE:FVR) & Sunstone Hotel Investors (NYSE:SHO)

FrontView REIT (NYSE:FVR) and Sunstone Hotel Investors (NYSE:SHO) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares FrontView REIT and Sunstone Hotel Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FrontView REIT	N/A	N/A	N/A
Sunstone Hotel Investors	3.85%	1.93%	1.14%

Dividends

FrontView REIT pays an annual dividend of $0.86 per share and has a dividend yield of 7.6%. Sunstone Hotel Investors pays an annual dividend of $0.36 per share and has a dividend yield of 4.2%. Sunstone Hotel Investors pays out 360.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sunstone Hotel Investors has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of recent recommendations for FrontView REIT and Sunstone Hotel Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FrontView REIT	1	2	2	0	2.20
Sunstone Hotel Investors	2	3	2	0	2.00

FrontView REIT presently has a consensus price target of $15.10, indicating a potential upside of 33.27%. Sunstone Hotel Investors has a consensus price target of $9.07, indicating a potential upside of 4.99%. Given FrontView REIT’s stronger consensus rating and higher possible upside, equities research analysts plainly believe FrontView REIT is more favorable than Sunstone Hotel Investors.

Valuation and Earnings

This table compares FrontView REIT and Sunstone Hotel Investors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FrontView REIT	$66.68 million	3.24	-$22.21 million	N/A	N/A
Sunstone Hotel Investors	$905.81 million	1.90	$43.26 million	$0.10	86.40

Sunstone Hotel Investors has higher revenue and earnings than FrontView REIT.

Institutional & Insider Ownership

99.4% of Sunstone Hotel Investors shares are held by institutional investors. 4.3% of FrontView REIT shares are held by insiders. Comparatively, 1.1% of Sunstone Hotel Investors shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Sunstone Hotel Investors beats FrontView REIT on 7 of the 13 factors compared between the two stocks.

About FrontView REIT

FrontView REIT specializes in real estate investing.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.