Reviewing Summit Hotel Properties (NYSE:INN) and Phillips Edison & Company, Inc. (NASDAQ:PECO)

Summit Hotel Properties (NYSE:INN) and Phillips Edison & Company, Inc. (NASDAQ:PECO) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Valuation and Earnings

This table compares Summit Hotel Properties and Phillips Edison & Company, Inc.’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$736.13 million	0.85	-$12.11 million	($0.24)	-24.21
Phillips Edison & Company, Inc.	$610.12 million	6.58	$56.85 million	$0.46	71.26

Phillips Edison & Company, Inc. has lower revenue, but higher earnings than Summit Hotel Properties. Summit Hotel Properties is trading at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Summit Hotel Properties and Phillips Edison & Company, Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	-1.04%	-0.56%	-0.26%
Phillips Edison & Company, Inc.	9.33%	2.21%	1.21%

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.5%. Phillips Edison & Company, Inc. pays an annual dividend of $1.17 per share and has a dividend yield of 3.6%. Summit Hotel Properties pays out -133.3% of its earnings in the form of a dividend. Phillips Edison & Company, Inc. pays out 254.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. 3.4% of Summit Hotel Properties shares are held by company insiders. Comparatively, 7.9% of Phillips Edison & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Summit Hotel Properties has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Phillips Edison & Company, Inc. has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Summit Hotel Properties and Phillips Edison & Company, Inc., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	0	1	0	0	2.00
Phillips Edison & Company, Inc.	1	4	3	0	2.25

Phillips Edison & Company, Inc. has a consensus target price of $37.43, indicating a potential upside of 14.18%. Given Phillips Edison & Company, Inc.’s stronger consensus rating and higher probable upside, analysts clearly believe Phillips Edison & Company, Inc. is more favorable than Summit Hotel Properties.

Summary

Phillips Edison & Company, Inc. beats Summit Hotel Properties on 11 of the 16 factors compared between the two stocks.

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.

About Phillips Edison & Company, Inc.

Phillips Edison & Company, Inc. (PECO) is one of the nation's largest owners and operators of omni-channel grocery-anchored shopping centers. Founded in 1991, PECO has generated strong results through its vertically-integrated operating platform and national footprint of well-occupied shopping centers. PECO's centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO's top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2023, PECO managed 301 shopping centers, including 281 wholly-owned centers comprising 32.2 million square feet across 31 states and 20 shopping centers owned in one institutional joint venture. PECO is exclusively focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.