Sotherly Hotels (NASDAQ:SOHO) versus NNN REIT (NYSE:NNN) Head-To-Head Comparison
by Danessa Lincoln · The Markets DailyNNN REIT (NYSE:NNN – Get Free Report) and Sotherly Hotels (NASDAQ:SOHO – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Analyst Ratings
This is a summary of recent recommendations for NNN REIT and Sotherly Hotels, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NNN REIT | 1 | 8 | 1 | 0 | 2.00 |
| Sotherly Hotels | 1 | 1 | 0 | 0 | 1.50 |
NNN REIT presently has a consensus target price of $43.78, suggesting a potential upside of 8.34%. Given NNN REIT’s stronger consensus rating and higher probable upside, equities analysts clearly believe NNN REIT is more favorable than Sotherly Hotels.
Insider and Institutional Ownership
90.0% of NNN REIT shares are owned by institutional investors. Comparatively, 27.5% of Sotherly Hotels shares are owned by institutional investors. 0.9% of NNN REIT shares are owned by company insiders. Comparatively, 14.9% of Sotherly Hotels shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
NNN REIT has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Sotherly Hotels has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Earnings and Valuation
This table compares NNN REIT and Sotherly Hotels”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NNN REIT | $869.27 million | 8.83 | $396.83 million | $2.08 | 19.43 |
| Sotherly Hotels | $181.89 million | 0.25 | $1.30 million | ($0.42) | -5.20 |
NNN REIT has higher revenue and earnings than Sotherly Hotels. Sotherly Hotels is trading at a lower price-to-earnings ratio than NNN REIT, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares NNN REIT and Sotherly Hotels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NNN REIT | 43.22% | 8.95% | 4.29% |
| Sotherly Hotels | -0.15% | -0.64% | -0.06% |
Summary
NNN REIT beats Sotherly Hotels on 13 of the 14 factors compared between the two stocks.
About NNN REIT
NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.
About Sotherly Hotels
Sotherly Hotels Inc. is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper-upscale full-service hotels in the Southern United States. Sotherly may also opportunistically acquire hotels throughout the United States. Currently, the Company's portfolio consists of investments in ten hotel properties, comprising 2,786 rooms, as well as interests in two condominium hotels and their associated rental programs. The Company owns hotels that operate under the Hilton Worldwide and Hyatt Hotels Corporation brands, as well as independent hotels. Sotherly Hotels Inc. was organized in 2004 and is headquartered in Williamsburg, Virginia.