Sunstone Hotel Investors (SHO) & LaSalle Hotel Properties (NYSE:LHO) Head to Head Contrast
Sunstone Hotel Investors (NYSE: SHO) and LaSalle Hotel Properties (NYSE:LHO) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.
Sunstone Hotel Investors pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. Sunstone Hotel Investors pays out 25.6% of its earnings in the form of a dividend. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Sunstone Hotel Investors has raised its dividend for 5 consecutive years.
Valuation & Earnings
This table compares Sunstone Hotel Investors and LaSalle Hotel Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sunstone Hotel Investors||$1.19 billion||2.93||$344.05 million||$0.78||19.87|
|LaSalle Hotel Properties||$1.18 billion||2.70||$371.93 million||$2.69||10.45|
LaSalle Hotel Properties has higher revenue, but lower earnings than Sunstone Hotel Investors. LaSalle Hotel Properties is trading at a lower price-to-earnings ratio than Sunstone Hotel Investors, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Sunstone Hotel Investors and LaSalle Hotel Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sunstone Hotel Investors||3||6||2||0||1.91|
|LaSalle Hotel Properties||2||10||2||0||2.00|
Sunstone Hotel Investors currently has a consensus target price of $15.40, indicating a potential downside of 0.65%. LaSalle Hotel Properties has a consensus target price of $28.46, indicating a potential upside of 1.24%. Given LaSalle Hotel Properties’ stronger consensus rating and higher probable upside, analysts plainly believe LaSalle Hotel Properties is more favorable than Sunstone Hotel Investors.
Risk & Volatility
Sunstone Hotel Investors has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
This table compares Sunstone Hotel Investors and LaSalle Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sunstone Hotel Investors||15.41%||7.70%||4.91%|
|LaSalle Hotel Properties||27.85%||13.05%||8.48%|
LaSalle Hotel Properties beats Sunstone Hotel Investors on 8 of the 14 factors compared between the two stocks.
Sunstone Hotel Investors Company Profile
Sunstone Hotel Investors, Inc. operates as a self-managed and self-administered real estate investment trust. The Company’s primary business is to acquire, own, asset manage and renovate primarily urban and resort upper upscale hotels in the United States. It operates through hotel ownership segment. It owns primarily urban and resort upper upscale hotels in the United States. The Company’s hotels are operated under nationally recognized brands, such as Marriott, Hilton and Hyatt. As of July 26, 2017 the Company has interest in 27 hotels, including 13,202 rooms. The Company’s hotels are located in gateway markets, such as Boston, New York, Washington, District of Columbia (DC)/Baltimore, Chicago, Orlando, New Orleans, San Francisco, Los Angeles, Orange County and San Diego.
LaSalle Hotel Properties Company Profile
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
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