SL Green Realty (NYSE:SLG – Get Free Report) and Sotherly Hotels (NASDAQ:SOHO – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.
Insider and Institutional Ownership
90.0% of SL Green Realty shares are held by institutional investors. Comparatively, 27.5% of Sotherly Hotels shares are held by institutional investors. 5.0% of SL Green Realty shares are held by company insiders. Comparatively, 14.9% of Sotherly Hotels shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
SL Green Realty has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SL Green Realty | 1 | 9 | 6 | 0 | 2.31 |
| Sotherly Hotels | 1 | 1 | 0 | 0 | 1.50 |
SL Green Realty currently has a consensus target price of $58.65, indicating a potential upside of 31.53%. Given SL Green Realty’s stronger consensus rating and higher possible upside, research analysts plainly believe SL Green Realty is more favorable than Sotherly Hotels.
Profitability
This table compares SL Green Realty and Sotherly Hotels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SL Green Realty | 1.75% | -0.22% | -0.08% |
| Sotherly Hotels | -0.15% | -0.64% | -0.06% |
Valuation and Earnings
This table compares SL Green Realty and Sotherly Hotels”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SL Green Realty | $886.27 million | 3.59 | $30.65 million | $0.01 | 4,459.00 |
| Sotherly Hotels | $181.89 million | 0.25 | $1.30 million | ($0.42) | -5.21 |
SL Green Realty has higher revenue and earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than SL Green Realty, indicating that it is currently the more affordable of the two stocks.
Summary
SL Green Realty beats Sotherly Hotels on 12 of the 14 factors compared between the two stocks.
About SL Green Realty
3SL Green Realty Corp., Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of June 30, 2022, SL Green held interests in 64 buildings totaling 34.4 million square feet. This included ownership interests in 26.3 million square feet of Manhattan buildings and 7.2 million square feet securing debt and preferred equity investments.
About Sotherly Hotels
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.
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