Sunstone Hotel Investors Inc (SHO)vsService Properties Trust (SVC)
SHO
Sunstone Hotel Investors Inc
$11.48
-0.17%
REAL ESTATE · Cap: $2.02B
SVC
Service Properties Trust
$1.65
-0.60%
REAL ESTATE · Cap: $1.06B
Smart Verdict
WallStSmart Research — data-driven comparison
Service Properties Trust generates 77% more annual revenue ($1.74B vs $985.77M). SHO leads profitability with a 3.8% profit margin vs -13.6%. SVC appears more attractively valued with a PEG of 2.27. SHO earns a higher WallStSmart Score of 55/100 (C).
SHO
Buy55
out of 100
Grade: C
SVC
Avoid34
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+35.1%
Fair Value
$14.30
Current Price
$11.48
$2.82 discount
Margin of Safety
+67.2%
Fair Value
$7.02
Current Price
$1.65
$5.37 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 1170.0% YoY
Reasonable price relative to book value
Areas to Watch
ROE of 2.0% — below average capital efficiency
3.8% margin — thin
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Smaller company, higher risk/reward
ROE of -38.6% — below average capital efficiency
Revenue declined 16.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : SHO
The strongest argument for SHO centers on Price/Book, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.
Bull Case : SVC
The strongest argument for SVC centers on Price/Book.
Bear Case : SHO
The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 98.4x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.
Bear Case : SVC
The primary concerns for SVC are PEG Ratio, Market Cap, Return on Equity. Debt-to-equity of 10.30 is elevated, increasing financial risk.
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 1.63 — expect wider price swings.
SHO is growing revenue faster at 11.0% — sustainability is the question.
SHO generates stronger free cash flow (14M), providing more financial flexibility.
Bottom Line
SHO scores higher overall (55/100 vs 34/100) and 11.0% revenue growth. SVC offers better value entry with a 67.2% margin of safety. Both earn "Buy" and "Avoid" 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.
Visit Website →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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