Reviewing Summit Hotel Properties (NYSE:INN) & Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI)

Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Institutional & Insider Ownership

96.1% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by institutional investors. Comparatively, 96.5% of Summit Hotel Properties shares are held by institutional investors. 2.0% of Hannon Armstrong Sustainable Infrastructure Capital shares are held by insiders. Comparatively, 3.4% of Summit Hotel Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Hannon Armstrong Sustainable Infrastructure Capital pays an annual dividend of $1.66 per share and has a dividend yield of 5.9%. Summit Hotel Properties pays an annual dividend of $0.32 per share and has a dividend yield of 4.9%. Hannon Armstrong Sustainable Infrastructure Capital pays out 93.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties pays out 3,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hannon Armstrong Sustainable Infrastructure Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Summit Hotel Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hannon Armstrong Sustainable Infrastructure Capital	59.56%	11.53%	3.93%
Summit Hotel Properties	3.41%	1.87%	0.86%

Earnings and Valuation

This table compares Hannon Armstrong Sustainable Infrastructure Capital and Summit Hotel Properties”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hannon Armstrong Sustainable Infrastructure Capital	$319.87 million	10.37	$148.84 million	$1.78	15.73
Summit Hotel Properties	$736.13 million	0.96	-$12.11 million	$0.01	652.50

Hannon Armstrong Sustainable Infrastructure Capital has higher earnings, but lower revenue than Summit Hotel Properties. Hannon Armstrong Sustainable Infrastructure Capital 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

Hannon Armstrong Sustainable Infrastructure Capital has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 2.02, suggesting that its stock price is 102% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hannon Armstrong Sustainable Infrastructure Capital and Summit Hotel Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hannon Armstrong Sustainable Infrastructure Capital	0	1	11	2	3.07
Summit Hotel Properties	0	0	0	0	0.00

Hannon Armstrong Sustainable Infrastructure Capital presently has a consensus price target of $40.23, suggesting a potential upside of 43.68%. Given Hannon Armstrong Sustainable Infrastructure Capital’s stronger consensus rating and higher probable upside, research analysts plainly believe Hannon Armstrong Sustainable Infrastructure Capital is more favorable than Summit Hotel Properties.

Summary

Hannon Armstrong Sustainable Infrastructure Capital beats Summit Hotel Properties on 12 of the 17 factors compared between the two stocks.

About Hannon Armstrong Sustainable Infrastructure Capital

Hannon Armstrong Sustainable Infrastructure Capital, Inc., through its subsidiaries, engages in the investment in energy efficiency, renewable energy, and sustainable infrastructure markets in the United States. The company's portfolio includes equity investments, commercial and government receivables, real estate, and debt securities. It invests in climate solution, including Behind-the-Meter that distributes energy projects which reduce energy usage or cost through heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems; Grid-Connected, a renewable energy projects that deploy cleaner energy sources, such as solar, solar-plus-storage, and wind to generate power production; and Fuels, Transport, and Nature, a range of real assets spanning high-emitting economic sectors other than the power grid such as transportation and fuels comprising renewable natural gas plants, transportation fleet enhancements, ecological restoration, and other projects. Hannon Armstrong Sustainable Infrastructure Capital, Inc. was founded in 1981 and is headquartered in Annapolis, Maryland.

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.