WallStSmart

Sunstone Hotel Investors Inc (SHO)vsService Properties Trust (SVC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Service Properties Trust generates 89% more annual revenue ($1.81B vs $960.13M). SHO leads profitability with a 2.6% profit margin vs -11.2%. SVC appears more attractively valued with a PEG of 2.27. SHO earns a higher WallStSmart Score of 44/100 (D).

SHO

Hold

44

out of 100

Grade: D

Growth: 4.0Profit: 6.0Value: 2.0Quality: 6.5
Piotroski: 3/9Altman Z: 1.45

SVC

Hold

41

out of 100

Grade: D

Growth: 2.0Profit: 3.5Value: 6.7Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOSignificantly Overvalued (-3337.0%)

Margin of Safety

-3337.0%

Fair Value

$0.27

Current Price

$9.26

$8.99 premium

UndervaluedFair: $0.27Overvalued

Intrinsic value data unavailable for SVC.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Return on EquityProfitability
121.0%10/10

Every $100 of equity generates 121 in profit

SVC1 strengths · Avg: 10.0/10
Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Areas to Watch

SHO4 concerns · Avg: 2.8/10
Market CapQuality
$1.75B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.6%3/10

2.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

SVC4 concerns · Avg: 2.8/10
PEG RatioValuation
2.274/10

Expensive relative to growth rate

Market CapQuality
$295.79M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-27.0%2/10

ROE of -27.0% — below average capital efficiency

Revenue GrowthGrowth
-12.9%2/10

Revenue declined 12.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, Return on Equity. Revenue growth of 10.3% demonstrates continued momentum.

Bull Case : SVC

The strongest argument for SVC centers on Price/Book.

Bear Case : SHO

The primary concerns for SHO are Market Cap, Profit Margin, Piotroski F-Score. A P/E of 231.5x leaves little room for execution misses. Thin 2.6% margins leave little buffer for downturns.

Bear Case : SVC

The primary concerns for SVC are PEG Ratio, Market Cap, Return on Equity.

Key Dynamics to Monitor

SHO profiles as a value stock while SVC is a turnaround play — different risk/reward profiles.

SVC carries more volatility with a beta of 1.41 — expect wider price swings.

SHO is growing revenue faster at 10.3% — sustainability is the question.

SHO generates stronger free cash flow (7M), providing more financial flexibility.

Bottom Line

SHO scores higher overall (44/100 vs 41/100) and 10.3% revenue growth. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Sunstone Hotel Investors Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust (REIT) that, as of the date of this release, has interests in 19 hotels with 9,997 rooms.

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Service Properties Trust

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Service Properties Trust is a real estate investment trust, or REIT, that owns a diverse portfolio of hotel and net-leasing services and need-based retail properties in the United States and in Puerto Rico and Canada with 149 different brands across 23 industries. The company is headquartered in Newton, Massachusetts.

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