Head to Head Analysis: RLJ Lodging Trust (RLJ) and Summit Hotel Properties (INN)
RLJ Lodging Trust (NYSE: RLJ) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
This is a breakdown of current ratings and recommmendations for RLJ Lodging Trust and Summit Hotel Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|RLJ Lodging Trust||2||3||6||0||2.36|
|Summit Hotel Properties||1||1||6||0||2.63|
RLJ Lodging Trust currently has a consensus price target of $24.09, suggesting a potential upside of 9.50%. Summit Hotel Properties has a consensus price target of $17.43, suggesting a potential upside of 9.00%. Given RLJ Lodging Trust’s higher probable upside, equities research analysts clearly believe RLJ Lodging Trust is more favorable than Summit Hotel Properties.
This table compares RLJ Lodging Trust and Summit Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|RLJ Lodging Trust||16.12%||8.16%||4.52%|
|Summit Hotel Properties||21.97%||9.89%||5.83%|
Valuation & Earnings
This table compares RLJ Lodging Trust and Summit Hotel Properties’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RLJ Lodging Trust||$1.12 billion||2.43||$355.90 million||$1.45||15.17|
|Summit Hotel Properties||$475.70 million||3.50||$154.58 million||$0.90||17.77|
RLJ Lodging Trust has higher revenue and earnings than Summit Hotel Properties. RLJ Lodging 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.
RLJ Lodging Trust pays an annual dividend of $0.44 per share and has a dividend yield of 2.0%. Summit Hotel Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.3%. RLJ Lodging Trust pays out 30.3% of its earnings in the form of a dividend. Summit Hotel Properties pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RLJ Lodging Trust has raised its dividend for 3 consecutive years and Summit Hotel Properties has raised its dividend for 6 consecutive years. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
95.3% of Summit Hotel Properties shares are owned by institutional investors. 2.3% of RLJ Lodging Trust shares are owned by company insiders. Comparatively, 1.7% of Summit Hotel Properties shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk and Volatility
RLJ Lodging Trust has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
Summit Hotel Properties beats RLJ Lodging Trust on 10 of the 16 factors compared between the two stocks.
RLJ Lodging Trust Company Profile
RLJ Lodging Trust is a self-administered real estate investment trust. The Company is engaged in the acquisition of focused-service and compact full-service hotels. As of December 31, 2016, the Company owned 122 hotels with approximately 20,100 rooms, located in 21 states and the District of Columbia, and an interest in one mortgage loan secured by a hotel. Its hotels’ brand affiliations include Residence Inn, Courtyard, SpringHill Suites, Fairfield Inn & Suites, Marriott, Renaissance, Hilton Garden Inn, Hampton Inn/Hampton Inn & Suites, Embassy Suites, DoubleTree, Homewood Suites, Hilton, Hyatt House, Hyatt Place and Hyatt/Hyatt Centric. Its operating partnership is RLJ Lodging Trust, L.P. Its properties include Courtyard San Francisco, Courtyard Boulder Longmont, Residence Inn Longmont Boulder, DoubleTree Grand Key Resort, Courtyard Atlanta Buckhead, Courtyard Chicago Southeast Hammond, Courtyard Louisville Northeast, DoubleTree Hotel Columbia and Residence Inn Detroit Novi.
Summit Hotel Properties Company Profile
Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 79 hotels with a total of 11,590 guestrooms located in 24 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 92% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.
Receive News & Ratings for RLJ Lodging Trust Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RLJ Lodging Trust and related companies with Analyst Ratings Network's FREE daily email newsletter.