Sotherly Hotels (NASDAQ:SOHO – Get Free Report) and Macerich (NYSE:MAC – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Profitability
This table compares Sotherly Hotels and Macerich’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sotherly Hotels | 2.27% | 7.81% | 0.98% |
| Macerich | -31.00% | -10.26% | -3.55% |
Analyst Ratings
This is a breakdown of current ratings and price targets for Sotherly Hotels and Macerich, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sotherly Hotels | 0 | 1 | 0 | 0 | 2.00 |
| Macerich | 1 | 3 | 0 | 0 | 1.75 |
Earnings and Valuation
This table compares Sotherly Hotels and Macerich’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sotherly Hotels | $173.84 million | 0.17 | $3.94 million | ($0.21) | -6.90 |
| Macerich | $884.07 million | 4.20 | -$274.07 million | ($1.27) | -13.54 |
Sotherly Hotels has higher earnings, but lower revenue than Macerich. Macerich is trading at a lower price-to-earnings ratio than Sotherly Hotels, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
27.5% of Sotherly Hotels shares are owned by institutional investors. Comparatively, 87.4% of Macerich shares are owned by institutional investors. 15.9% of Sotherly Hotels shares are owned by company insiders. Comparatively, 0.6% of Macerich shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Sotherly Hotels has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Macerich has a beta of 2.33, suggesting that its share price is 133% more volatile than the S&P 500.
Summary
Sotherly Hotels beats Macerich on 9 of the 13 factors compared between the two stocks.
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.
About Macerich
Macerich is a fully integrated, self-managed and self-administered real estate investment trust (REIT). As a leading owner, operator and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich's portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 47 million square feet of real estate consisting primarily of interests in 44 regional town centers. Macerich is firmly dedicated to advancing environmental goals, social good and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for nine consecutive years (2015-2023).
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