Summit Hotel Properties (NYSE:INN) versus Safehold (NYSE:SAFE) Head-To-Head Survey

Summit Hotel Properties (NYSE:INN) and Safehold (NYSE:SAFE) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Summit Hotel Properties and Safehold, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	0	1	0	0	2.00
Safehold	0	4	5	0	2.56

Safehold has a consensus target price of $27.22, suggesting a potential upside of 44.41%. Given Safehold’s stronger consensus rating and higher probable upside, analysts plainly believe Safehold is more favorable than Summit Hotel Properties.

Earnings and Valuation

This table compares Summit Hotel Properties and Safehold’s gross revenue, earnings per share 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)	-24.13
Safehold	$352.58 million	3.82	-$54.97 million	($0.45)	-41.89

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

Volatility & Risk

Summit Hotel Properties has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500. Comparatively, Safehold has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.5%. Safehold pays an annual dividend of $0.71 per share and has a dividend yield of 3.8%. Summit Hotel Properties pays out -133.3% of its earnings in the form of a dividend. Safehold pays out -157.8% 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.

Insider and Institutional Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 70.4% of Safehold shares are held by institutional investors. 3.4% of Summit Hotel Properties shares are held by company insiders. Comparatively, 3.3% of Safehold shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Summit Hotel Properties and Safehold’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%
Safehold	-7.87%	4.43%	1.55%

Summary

Summit Hotel Properties beats Safehold on 9 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 Safehold

Safehold Inc. (NYSE: SAFE) is revolutionizing real estate ownership by providing a new and better way for owners to unlock the value of the land beneath their buildings. Having created the modern ground lease industry in 2017, Safehold continues to help owners of high quality multifamily, office, industrial, hospitality, student housing, life science and mixed-use properties generate higher returns with less risk. The Company, which is taxed as a real estate investment trust (REIT), seeks to deliver safe, growing income and long-term capital appreciation to its shareholders.