Head-To-Head Analysis: Sunstone Hotel Investors (NYSE:SHO) vs. Travel + Leisure (NYSE:TNL)

Sunstone Hotel Investors (NYSE:SHO) and Travel + Leisure (NYSE:TNL) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Valuation & Earnings

This table compares Sunstone Hotel Investors and Travel + Leisure’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sunstone Hotel Investors $267.91 million 9.68 -$404.69 million ($0.74) -15.97
Travel + Leisure $2.16 billion 2.25 -$255.00 million $2.33 24.17

Travel + Leisure has higher revenue and earnings than Sunstone Hotel Investors. Sunstone Hotel Investors is trading at a lower price-to-earnings ratio than Travel + Leisure, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Sunstone Hotel Investors has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Travel + Leisure has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Sunstone Hotel Investors and Travel + Leisure, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sunstone Hotel Investors 1 5 0 0 1.83
Travel + Leisure 0 1 6 0 2.86

Sunstone Hotel Investors presently has a consensus target price of $12.33, indicating a potential upside of 4.34%. Travel + Leisure has a consensus target price of $73.29, indicating a potential upside of 30.12%. Given Travel + Leisure’s stronger consensus rating and higher probable upside, analysts clearly believe Travel + Leisure is more favorable than Sunstone Hotel Investors.

Insider & Institutional Ownership

96.4% of Sunstone Hotel Investors shares are held by institutional investors. Comparatively, 86.8% of Travel + Leisure shares are held by institutional investors. 1.5% of Sunstone Hotel Investors shares are held by insiders. Comparatively, 1.9% of Travel + Leisure shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Sunstone Hotel Investors and Travel + Leisure’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sunstone Hotel Investors -38.03% -7.65% -4.74%
Travel + Leisure 7.01% -26.19% 3.52%

Summary

Travel + Leisure beats Sunstone Hotel Investors on 11 of the 14 factors compared between the two stocks.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc. is a real estate investment trust, which engages in the acquisition, ownership, asset management, and renovation of hotels and resorts. It operates under the following brands: Marriott, Hilton, and Hyatt. The company was founded by Robert A. Alter in 1995 and is headquartered in Irvine, CA.

Travel + Leisure Company Profile

Travel + Leisure Co. is a membership and leisure travel company, with a portfolio of nearly 20 resort, travel club, and lifestyle travel brands. The company provides outstanding vacation experiences and travel inspiration to millions of owners, members, and subscribers every year through its products and services: Wyndham Destinations, the vacation ownership company with 230 vacation club resort locations across the globe; Panorama, the membership travel business that includes the vacation exchange company, industry travel technology, and subscription travel brands; and Travel + Leisure Group, featuring online and print travel content, online booking platforms and travel clubs, and branded consumer products. Travel + Leisure Co. is a membership and leisure travel company, with a portfolio of nearly 20 resort, travel club, and lifestyle travel brands. Travel + Leisure was founded on July 31, 2006 and is headquartered in Orlando, FL.

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