Sotherly Hotels (NASDAQ: SOHO) is one of 28 publicly-traded companies in the “Hospitality REITs” industry, but how does it contrast to its rivals? We will compare Sotherly Hotels to similar companies based on the strength of its valuation, institutional ownership, dividends, profitability, risk, earnings and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings for Sotherly Hotels and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sotherly Hotels 0 1 1 0 2.50
Sotherly Hotels Competitors 234 938 910 22 2.34

Sotherly Hotels currently has a consensus target price of $8.00, indicating a potential upside of 36.05%. As a group, “Hospitality REITs” companies have a potential upside of 5.98%. Given Sotherly Hotels’ stronger consensus rating and higher probable upside, analysts plainly believe Sotherly Hotels is more favorable than its rivals.

Profitability

This table compares Sotherly Hotels and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sotherly Hotels 1.59% 3.02% 0.60%
Sotherly Hotels Competitors 7.70% 1.75% 1.72%

Insider & Institutional Ownership

26.5% of Sotherly Hotels shares are held by institutional investors. Comparatively, 77.4% of shares of all “Hospitality REITs” companies are held by institutional investors. 13.8% of Sotherly Hotels shares are held by insiders. Comparatively, 5.4% of shares of all “Hospitality REITs” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Sotherly Hotels pays an annual dividend of $0.44 per share and has a dividend yield of 7.5%. Sotherly Hotels pays out -4,395.6% of its earnings in the form of a dividend. As a group, “Hospitality REITs” companies pay a dividend yield of 5.3% and pay out 132.6% of their earnings in the form of a dividend. Sotherly Hotels is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility and Risk

Sotherly Hotels has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Sotherly Hotels’ rivals have a beta of 1.01, suggesting that their average share price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sotherly Hotels and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sotherly Hotels $152.55 million $34.37 million -587.41
Sotherly Hotels Competitors $1.10 billion $338.63 million -14.51

Sotherly Hotels’ rivals have higher revenue and earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Sotherly Hotels Company Profile

Sotherly Hotels Inc. is a self-managed and self-administered lodging real estate investment trust. The Company is focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the southern United States. The Company operates through the hotel ownership segment. The Company conducts its operations through Sotherly Hotels LP, its Operating Partnership, of which the Company is the general partner. Its portfolio consists of approximately 10 full-service, mainly upscale and upper-upscale hotels located in over eight states with an aggregate of approximately 3,010 rooms and approximately 160,930 square feet of meeting space. All of these hotels are owned by subsidiaries of the Operating Partnership, approximately 10 operate under the Hilton, Crowne Plaza, DoubleTree and Sheraton brands, one is an independent hotel, and all are managed on a day to day basis by MHI Hotels Services, LLC, which does business as Chesapeake Hospitality.

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