Reviewing CDL Hospitality Trusts (OTCMKTS:CDHSF) and Summit Hotel Properties (NYSE:INN)

Summit Hotel Properties (NYSE:INN) and CDL Hospitality Trusts (OTCMKTS:CDHSF) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Summit Hotel Properties and CDL Hospitality Trusts, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Summit Hotel Properties	0	1	0	0	2.00
CDL Hospitality Trusts	0	0	0	0	N/A

Institutional & Insider Ownership

96.5% of Summit Hotel Properties shares are held by institutional investors. Comparatively, 16.5% of CDL Hospitality Trusts shares are held by institutional investors. 3.4% of Summit Hotel Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Summit Hotel Properties and CDL Hospitality Trusts”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Summit Hotel Properties	$741.30 million	1.00	-$12.11 million	($0.24)	-28.63
CDL Hospitality Trusts	N/A	N/A	N/A	$0.13	5.35

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

Profitability

This table compares Summit Hotel Properties and CDL Hospitality Trusts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Summit Hotel Properties	3.23%	1.76%	0.81%
CDL Hospitality Trusts	N/A	N/A	N/A

Dividends

Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.7%. CDL Hospitality Trusts pays an annual dividend of $0.11 per share and has a dividend yield of 16.1%. Summit Hotel Properties pays out -133.3% of its earnings in the form of a dividend. CDL Hospitality Trusts pays out 86.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Summit Hotel Properties beats CDL Hospitality Trusts on 7 of the 10 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 CDL Hospitality Trusts

CDL Hospitality Trusts (CDLHT) is one of Asia's leading hospitality trusts with assets under management of about S$3.3 billion as at 31 December 2023. CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT), a real estate investment trust, and CDL Hospitality Business Trust (HBT), a business trust. CDLHT was listed on the Singapore Exchange Securities Trading Limited on 19 July 2006. M&C REIT Management Limited is the manager of H-REIT, the first hotel real estate investment trust in Singapore, and M&C Business Trust Management Limited is the trustee-manager of HBT.