WallStSmart

Sunstone Hotel Investors Inc (SHO)vsXenia Hotels & Resorts Inc (XHR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Xenia Hotels & Resorts Inc generates 10% more annual revenue ($1.08B vs $985.77M). XHR leads profitability with a 6.2% profit margin vs 3.8%. XHR trades at a lower P/E of 30.1x. XHR earns a higher WallStSmart Score of 56/100 (C).

SHO

Buy

55

out of 100

Grade: C

Growth: 6.7Profit: 4.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.24

XHR

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 4.5Value: 4.3Quality: 5.5
Piotroski: 5/9Altman Z: 0.73
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SHOUndervalued (+34.8%)

Margin of Safety

+34.8%

Fair Value

$14.23

Current Price

$11.77

$2.46 discount

UndervaluedFair: $14.23Overvalued
XHRFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$15.55

Current Price

$20.08

$4.53 premium

UndervaluedFair: $15.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SHO2 strengths · Avg: 10.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1170.0%10/10

Earnings expanding 1170.0% YoY

XHR2 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

Areas to Watch

SHO4 concerns · Avg: 2.8/10
Return on EquityProfitability
2.0%3/10

ROE of 2.0% — below average capital efficiency

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
3.002/10

Expensive relative to growth rate

XHR4 concerns · Avg: 3.5/10
P/E RatioValuation
30.1x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Return on EquityProfitability
5.9%3/10

ROE of 5.9% — below average capital efficiency

Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : SHO

The strongest argument for SHO centers on Price/Book, EPS Growth. Revenue growth of 11.0% demonstrates continued momentum.

Bull Case : XHR

The strongest argument for XHR centers on Price/Book, EPS Growth.

Bear Case : SHO

The primary concerns for SHO are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 107.2x leaves little room for execution misses. Thin 3.8% margins leave little buffer for downturns.

Bear Case : XHR

The primary concerns for XHR are P/E Ratio, Revenue Growth, Return on Equity.

Key Dynamics to Monitor

XHR carries more volatility with a beta of 1.16 — expect wider price swings.

SHO is growing revenue faster at 11.0% — sustainability is the question.

XHR generates stronger free cash flow (30M), providing more financial flexibility.

Monitor REIT - HOTEL & MOTEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

XHR scores higher overall (56/100 vs 55/100). SHO offers better value entry with a 34.8% margin of safety. Both earn "Buy" and "Buy" 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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Xenia Hotels & Resorts Inc

REAL ESTATE · REIT - HOTEL & MOTEL · USA

Xenia Hotels & Resorts, Inc. is a self-managed, self-managed REIT investing in upscale and luxury hotels and resorts in a unique position, with a focus on the top 25 US lodging markets, as well as destinations. key leisure in the United States. .

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