Comparing Summit Hotel Properties (NYSE:INN) & CTO Realty Growth (NYSE:CTO)

Summit Hotel Properties (NYSE:INN) and CTO Realty Growth (NYSE:CTO) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Earnings and Valuation

This table compares Summit Hotel Properties and CTO Realty Growth”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$729.47 million	0.79	-$7.69 million	($0.29)	-18.16
CTO Realty Growth	$149.54 million	4.64	$10.09 million	$0.21	97.87

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

Risk & Volatility

Summit Hotel Properties has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Summit Hotel Properties and CTO Realty Growth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	2	2	1	0	1.80
CTO Realty Growth	0	2	3	1	2.83

Summit Hotel Properties presently has a consensus target price of $5.00, suggesting a potential downside of 5.03%. CTO Realty Growth has a consensus target price of $22.67, suggesting a potential upside of 10.28%. Given CTO Realty Growth’s stronger consensus rating and higher possible upside, analysts plainly believe CTO Realty Growth is more favorable than Summit Hotel Properties.

Insider and Institutional Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are held by institutional investors. 4.3% of Summit Hotel Properties shares are held by company insiders. Comparatively, 4.0% of CTO Realty Growth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 6.1%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 7.4%. Summit Hotel Properties pays out -110.3% of its earnings in the form of a dividend. CTO Realty Growth pays out 723.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties has increased its dividend for 2 consecutive years.

Profitability

This table compares Summit Hotel Properties and CTO Realty Growth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	-1.75%	-1.03%	-0.46%
CTO Realty Growth	9.06%	2.47%	1.12%

Summary

CTO Realty Growth beats Summit Hotel Properties on 12 of the 18 factors compared between the two stocks.

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.

About CTO Realty Growth

CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.