Analyzing InnSuites Hospitality Trust (NYSE:IHT) & Summit Hotel Properties (NYSE:INN)

InnSuites Hospitality Trust (NYSE:IHT) and Summit Hotel Properties (NYSE:INN) are both small-cap real estate companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for InnSuites Hospitality Trust and Summit Hotel Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	0.00
Summit Hotel Properties	1	3	2	0	2.17

Summit Hotel Properties has a consensus target price of $5.40, indicating a potential downside of 10.60%. Given Summit Hotel Properties’ stronger consensus rating and higher possible upside, analysts clearly believe Summit Hotel Properties is more favorable than InnSuites Hospitality Trust.

Valuation and Earnings

This table compares InnSuites Hospitality Trust and Summit Hotel Properties”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.56 million	1.62	$200,000.00	($0.14)	-9.29
Summit Hotel Properties	$729.47 million	0.89	-$7.69 million	($0.23)	-26.26

InnSuites Hospitality Trust has higher earnings, but lower revenue than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than InnSuites Hospitality Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 68.1% of InnSuites Hospitality Trust shares are held by insiders. Comparatively, 4.3% of Summit Hotel Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.5%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.3%. InnSuites Hospitality Trust pays out -14.3% of its earnings in the form of a dividend. Summit Hotel Properties pays out -139.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Summit Hotel Properties has raised its dividend for 2 consecutive years. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares InnSuites Hospitality Trust and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%
Summit Hotel Properties	-0.99%	-0.60%	-0.26%

Risk and Volatility

InnSuites Hospitality Trust has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500.

Summary

Summit Hotel Properties beats InnSuites Hospitality Trust on 12 of the 17 factors compared between the two stocks.

About InnSuites Hospitality Trust

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of November 1, 2023, the Company’s portfolio consisted of 101 assets, 57 of which are wholly owned, with a total of 15,035 guestrooms located in 24 states.