WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Pebblebrook Hotel Trust generates 50% more annual revenue ($1.50B vs $1.00B). SHO leads profitability with a 5.3% profit margin vs -3.1%. SHO appears more attractively valued with a PEG of 3.00. SHO earns a higher WallStSmart Score of 55/100 (C).

PEB

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 3.5Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.44

SHO

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.24
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PEBUndervalued (+80.7%)

Margin of Safety

+80.7%

Fair Value

$66.74

Current Price

$17.84

$48.90 discount

UndervaluedFair: $66.74Overvalued
SHOUndervalued (+35.7%)

Margin of Safety

+35.7%

Fair Value

$14.44

Current Price

$11.00

$3.44 discount

UndervaluedFair: $14.44Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PEB2 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

EPS GrowthGrowth
189.2%10/10

Earnings expanding 189.2% YoY

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

Reasonable price relative to book value

EPS GrowthGrowth
365.2%10/10

Earnings expanding 365.2% YoY

Areas to Watch

PEB4 concerns · Avg: 2.3/10
Debt/EquityHealth
1.023/10

Elevated debt levels

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

Revenue GrowthGrowth
-0.1%2/10

Revenue declined 0.1%

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

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
5.3%3/10

5.3% 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, EPS Growth.

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, EPS Growth.

Bear Case : PEB

The primary concerns for PEB are Debt/Equity, PEG Ratio, Return on Equity.

Bear Case : SHO

The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 50.0x leaves little room for execution misses.

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 1.40 — expect wider price swings.

SHO is growing revenue faster at 6.2% — sustainability is the question.

PEB generates stronger free cash flow (62M), providing more financial flexibility.

Bottom Line

SHO scores higher overall (55/100 vs 51/100). PEB offers better value entry with a 80.7% 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.

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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