WallStSmart

Host Hotels & Resorts Inc (HST)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Host Hotels & Resorts Inc generates 527% more annual revenue ($6.18B vs $985.77M). HST leads profitability with a 16.4% profit margin vs 3.8%. HST appears more attractively valued with a PEG of 2.22. HST earns a higher WallStSmart Score of 64/100 (C+).

HST

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.38

SHO

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HSTOvervalued (-5.0%)

Margin of Safety

-5.0%

Fair Value

$19.00

Current Price

$24.62

$5.62 premium

UndervaluedFair: $19.00Overvalued
SHOUndervalued (+35.1%)

Margin of Safety

+35.1%

Fair Value

$14.30

Current Price

$11.48

$2.82 discount

UndervaluedFair: $14.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HST3 strengths · Avg: 8.7/10
EPS GrowthGrowth
105.3%10/10

Earnings expanding 105.3% YoY

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1170.0%10/10

Earnings expanding 1170.0% YoY

Areas to Watch

HST3 concerns · Avg: 3.3/10
PEG RatioValuation
2.224/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Altman Z-ScoreHealth
1.382/10

Distress zone — elevated risk

SHO4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : HST

The strongest argument for HST centers on EPS Growth, P/E Ratio, Price/Book. Profitability is solid with margins at 16.4% and operating margin at 19.2%.

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : HST

The primary concerns for HST are PEG Ratio, Revenue Growth, Altman Z-Score.

Bear Case : SHO

The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 98.4x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

HST carries more volatility with a beta of 1.13 — expect wider price swings.

SHO is growing revenue faster at 11.0% — sustainability is the question.

HST generates stronger free cash flow (220M), providing more financial flexibility.

Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

HST scores higher overall (64/100 vs 55/100), backed by strong 16.4% margins. SHO offers better value entry with a 35.1% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Host Hotels & Resorts Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Host Hotels & Resorts, Inc. is a real estate investment trust that invests in hotels.

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Sunstone Hotel Investors Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.

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