Sunstone Hotel Investors (NYSE:SHO) versus BRAEMAR HOTELS & RESORTS (NYSE:BHR) Head-To-Head Review

Sunstone Hotel Investors (NYSE:SHO – Get Free Report) and BRAEMAR HOTELS & RESORTS (NYSE:BHR – Get Free Report) are both real estate companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Dividends

Sunstone Hotel Investors pays an annual dividend of $0.36 per share and has a dividend yield of 3.1%. BRAEMAR HOTELS & RESORTS pays an annual dividend of $0.20 per share and has a dividend yield of 9.7%. Sunstone Hotel Investors pays out 327.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BRAEMAR HOTELS & RESORTS pays out -20.8% of its earnings in the form of a dividend. Sunstone Hotel Investors has increased its dividend for 2 consecutive years. BRAEMAR HOTELS & RESORTS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

Volatility & Risk

Sunstone Hotel Investors has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, BRAEMAR HOTELS & RESORTS has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

99.4% of Sunstone Hotel Investors shares are owned by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. 1.4% of Sunstone Hotel Investors shares are owned by company insiders. Comparatively, 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS”s revenue, earnings per share and valuation.

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

Analyst Ratings

This is a breakdown of recent recommendations for Sunstone Hotel Investors and BRAEMAR HOTELS & RESORTS, as provided by MarketBeat.

Sunstone Hotel Investors presently has a consensus target price of $10.67, indicating a potential downside of 8.71%. BRAEMAR HOTELS & RESORTS has a consensus target price of $2.50, indicating a potential upside of 21.07%. Given BRAEMAR HOTELS & RESORTS’s higher possible upside, analysts clearly believe BRAEMAR HOTELS & RESORTS is more favorable than Sunstone Hotel Investors.

Summary

Sunstone Hotel Investors beats BRAEMAR HOTELS & RESORTS on 13 of the 17 factors compared between the two stocks.

About Sunstone Hotel Investors

(Get Free Report)

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.

About BRAEMAR HOTELS & RESORTS

(Get Free Report)

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).