Phillips Edison & Company, Inc. (NASDAQ:PECO – Get Free Report) and Summit Hotel Properties (NYSE:INN – Get Free Report) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.
Insider & Institutional Ownership
80.7% of Phillips Edison & Company, Inc. shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 7.9% of Phillips Edison & Company, Inc. shares are held by insiders. Comparatively, 3.4% of Summit Hotel Properties 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.
Analyst Ratings
This is a breakdown of recent recommendations for Phillips Edison & Company, Inc. and Summit Hotel Properties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phillips Edison & Company, Inc. | 1 | 4 | 3 | 0 | 2.25 |
| Summit Hotel Properties | 0 | 1 | 0 | 0 | 2.00 |
Dividends
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 an annual dividend of $0.32 per share and has a dividend yield of 5.6%. 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 pays out -133.3% of its earnings in the form of a dividend. Summit Hotel Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk and Volatility
Phillips Edison & Company, Inc. has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 2.03, suggesting that its share price is 103% more volatile than the S&P 500.
Earnings & Valuation
This table compares Phillips Edison & Company, Inc. and Summit Hotel Properties’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phillips Edison & Company, Inc. | $610.12 million | 6.54 | $56.85 million | $0.46 | 70.87 |
| Summit Hotel Properties | $736.13 million | 0.85 | -$12.11 million | ($0.24) | -24.00 |
Phillips Edison & Company, Inc. has higher earnings, but lower revenue 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 Phillips Edison & Company, Inc. and Summit Hotel Properties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phillips Edison & Company, Inc. | 9.33% | 2.21% | 1.21% |
| Summit Hotel Properties | -1.04% | -0.56% | -0.26% |
Summary
Phillips Edison & Company, Inc. beats Summit Hotel Properties on 11 of the 16 factors compared between the two stocks.
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.
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.
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