Sunstone Hotel Investors (NYSE:SHO) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.
Volatility and Risk
Sunstone Hotel Investors has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.96, suggesting that its share price is 96% more volatile than the S&P 500.
Earnings & Valuation
This table compares Sunstone Hotel Investors and Weyerhaeuser's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Sunstone Hotel Investors | $1.12 billion | 2.45 | $135.73 million | $1.12 | 11.29 |
| Weyerhaeuser | $6.55 billion | 4.49 | $-76,000,000.00 | $0.39 | 100.82 |
Sunstone Hotel Investors has higher earnings, but lower revenue than Weyerhaeuser. Sunstone Hotel Investors is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.2% of Sunstone Hotel Investors shares are held by institutional investors. Comparatively, 77.5% of Weyerhaeuser shares are held by institutional investors. 1.2% of Sunstone Hotel Investors shares are held by insiders. Comparatively, 0.3% of Weyerhaeuser shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Sunstone Hotel Investors and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Sunstone Hotel Investors | -64.37% | -15.09% | -8.96% |
| Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Analyst Ratings
This is a breakdown of current recommendations and price targets for Sunstone Hotel Investors and Weyerhaeuser, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Sunstone Hotel Investors | 2 | 4 | 2 | 0 | 2.00 |
| Weyerhaeuser | 0 | 3 | 4 | 0 | 2.57 |
Sunstone Hotel Investors currently has a consensus target price of $10.3333, indicating a potential downside of 18.31%. Weyerhaeuser has a consensus target price of $32.4286, indicating a potential downside of 17.53%. Given Weyerhaeuser's stronger consensus rating and higher possible upside, analysts clearly believe Weyerhaeuser is more favorable than Sunstone Hotel Investors.
Summary
Weyerhaeuser beats Sunstone Hotel Investors on 10 of the 14 factors compared between the two stocks.
