Analyzing Summit Hotel Properties (NYSE:INN) and Four Corners Property Trust (NYSE:FCPT)

Four Corners Property Trust (NYSE:FCPT) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

98.7% of Four Corners Property Trust shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 1.2% of Four Corners Property Trust 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 will outperform the market over the long term.

Valuation & Earnings

This table compares Four Corners Property Trust and Summit Hotel Properties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Four Corners Property Trust	$268.07 million	10.62	$100.47 million	$1.07	26.61
Summit Hotel Properties	$731.78 million	0.82	-$12.11 million	$0.18	30.26

Four Corners Property Trust has higher earnings, but lower revenue than Summit Hotel Properties. Four Corners Property Trust 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.

Profitability

This table compares Four Corners Property Trust and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Four Corners Property Trust	37.48%	7.54%	3.95%
Summit Hotel Properties	3.41%	1.87%	0.86%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Four Corners Property Trust and Summit Hotel Properties, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Four Corners Property Trust	0	3	3	0	2.50
Summit Hotel Properties	0	0	0	0	0.00

Four Corners Property Trust currently has a consensus price target of $30.20, suggesting a potential upside of 6.08%. Given Four Corners Property Trust’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Four Corners Property Trust is more favorable than Summit Hotel Properties.

Volatility and Risk

Four Corners Property Trust has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 2.04, indicating that its stock price is 104% more volatile than the S&P 500.

Dividends

Four Corners Property Trust pays an annual dividend of $1.42 per share and has a dividend yield of 5.0%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 5.9%. Four Corners Property Trust pays out 132.7% 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 177.8% 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

Four Corners Property Trust beats Summit Hotel Properties on 11 of the 16 factors compared between the two stocks.

About Four Corners Property Trust

Four Corners Property Trust, Inc. engages in the owning, acquisition, and leasing of properties for use in the restaurant and food-service related industries. It operates through the Real Estate Operations and Restaurant Operations segments. The Real Estate Operations segment consists of rental revenues generated by leasing restaurant properties. The Restaurant Operations segment includes the Kerrow Restaurant operating business. The company was founded on July 2, 2015 and is headquartered in Mill Valley, CA.

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.