WallStSmart

Pebblebrook Hotel Trust (PEB)vsSunstone Hotel Investors Inc (SHO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pebblebrook Hotel Trust generates 52% more annual revenue ($1.50B vs $985.77M). SHO leads profitability with a 3.8% profit margin vs -3.5%. SHO appears more attractively valued with a PEG of 3.00. SHO earns a higher WallStSmart Score of 55/100 (C).

PEB

Hold

41

out of 100

Grade: D

Growth: 4.0Profit: 3.0Value: 5.7Quality: 4.0
Piotroski: 4/9Altman Z: 0.44

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

PEBUndervalued (+81.1%)

Margin of Safety

+81.1%

Fair Value

$68.08

Current Price

$16.89

$51.19 discount

UndervaluedFair: $68.08Overvalued
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

PEB1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

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

PEB4 concerns · Avg: 2.5/10
Market CapQuality
$1.73B3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

PEG RatioValuation
3.212/10

Expensive relative to growth rate

Return on EquityProfitability
-2.1%2/10

ROE of -2.1% — 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 : PEB

The strongest argument for PEB 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 : PEB

The primary concerns for PEB are Market Cap, Operating Margin, PEG Ratio.

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

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

PEB carries more volatility with a beta of 1.45 — expect wider price swings.

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

PEB generates stronger free cash flow (72M), providing more financial flexibility.

Bottom Line

SHO scores higher overall (55/100 vs 41/100) and 11.0% revenue growth. PEB offers better value entry with a 81.1% 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.

Pebblebrook Hotel Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Pebblebrook Hotel Trust (NYSE: PEB) is a publicly traded real estate investment trust (REIT) and the largest owner of urban and resort lifestyle hotels in the United States.

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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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