Head to Head Survey: Hannon Armstrong Sustainable Infrastructure Capital (NYSE:HASI) & Summit Hotel Properties (NYSE:INN)

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

Analyst Ratings

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

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

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

Risk and Volatility

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

Profitability

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

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

Earnings and Valuation

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

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

Hannon Armstrong Sustainable Infrastructure Capital has lower revenue, but higher earnings 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.

Insider and Institutional Ownership

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

Dividends

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 an annual dividend of $1.66 per share and has a dividend yield of 5.9%. 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 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. Hannon Armstrong Sustainable Infrastructure Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

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

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.

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.