WallStSmart

Summit Hotel Properties Inc (INN)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sunstone Hotel Investors Inc generates 35% more annual revenue ($985.77M vs $730.05M). SHO leads profitability with a 3.8% profit margin vs -1.5%. SHO earns a higher WallStSmart Score of 55/100 (C).

INN

Hold

40

out of 100

Grade: D

Growth: 3.3Profit: 3.5Value: 6.7Quality: 5.5
Piotroski: 5/9Altman Z: 0.56

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

INNUndervalued (+71.3%)

Margin of Safety

+71.3%

Fair Value

$16.22

Current Price

$5.85

$10.37 discount

UndervaluedFair: $16.22Overvalued
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

INN1 strengths · Avg: 10.0/10
Price/BookValuation
0.7x10/10

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

INN4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Market CapQuality
$622.02M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.693/10

Elevated debt levels

Return on EquityProfitability
-1.5%2/10

ROE of -1.5% — below average capital efficiency

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 : INN

The strongest argument for INN centers on Price/Book.

Bull Case : SHO

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

Bear Case : INN

The primary concerns for INN are Revenue Growth, Market Cap, Debt/Equity. Debt-to-equity of 1.69 is elevated, increasing financial risk.

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

INN profiles as a turnaround stock while SHO is a value play — different risk/reward profiles.

INN carries more volatility with a beta of 1.28 — expect wider price swings.

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

INN generates stronger free cash flow (16M), providing more financial flexibility.

Bottom Line

SHO scores higher overall (55/100 vs 40/100) and 11.0% revenue growth. INN offers better value entry with a 71.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Summit Hotel Properties Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on the ownership of premium brand hotels with efficient operating models primarily in the luxury segment of the lodging industry.

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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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