Financial Analysis: InnSuites Hospitality Trust (NYSE:IHT) vs. Strawberry Fields REIT (NASDAQ:STRW)

InnSuites Hospitality Trust (NYSE:IHT) and Strawberry Fields REIT (NASDAQ:STRW) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares InnSuites Hospitality Trust and Strawberry Fields REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnSuites Hospitality Trust	-11.56%	-40.28%	-5.83%
Strawberry Fields REIT	2.98%	6.64%	0.52%

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Strawberry Fields REIT pays an annual dividend of $0.56 per share and has a dividend yield of 5.4%. InnSuites Hospitality Trust pays out -13.3% of its earnings in the form of a dividend. Strawberry Fields REIT pays out 96.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Strawberry Fields REIT has increased its dividend for 1 consecutive years. Strawberry Fields REIT is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. 73.9% of InnSuites Hospitality Trust shares are held by insiders. Comparatively, 18.8% of Strawberry Fields REIT 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.

Analyst Recommendations

This is a breakdown of current ratings for InnSuites Hospitality Trust and Strawberry Fields REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	0.00
Strawberry Fields REIT	0	0	1	0	3.00

Strawberry Fields REIT has a consensus target price of $13.50, indicating a potential upside of 30.31%. Given Strawberry Fields REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Strawberry Fields REIT is more favorable than InnSuites Hospitality Trust.

Volatility & Risk

InnSuites Hospitality Trust has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Strawberry Fields REIT has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Valuation and Earnings

This table compares InnSuites Hospitality Trust and Strawberry Fields REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.51 million	2.53	$200,000.00	($0.15)	-14.47
Strawberry Fields REIT	$126.56 million	1.02	$2.50 million	$0.58	17.86

Strawberry Fields REIT has higher revenue and earnings than InnSuites Hospitality Trust. InnSuites Hospitality Trust is trading at a lower price-to-earnings ratio than Strawberry Fields REIT, indicating that it is currently the more affordable of the two stocks.

Summary

Strawberry Fields REIT beats InnSuites Hospitality Trust on 13 of the 17 factors compared between the two stocks.

About InnSuites Hospitality Trust

InnSuites Hospitality Trust (NYSE American symbol: IHT) first listed on the NYSE in 1971 is headquartered in Phoenix, Arizona is an unincorporated Ohio Business. Trust that owns and manages hotels under the InnSuites Hotels name. IHT qualifies as a Real Estate Investment Trust (REIT) for tax treatment currently taxed as a corporation with the IRS. IHT has paid dividends each year since 1971 currently at $0.2/year. There are approximately 9 million shares of stock outstanding. In addition, there are approximately 3 million RRF Partnership units convertible 1 to 1 into IHT stock. Total shares and units are approximately 12 million.

About Strawberry Fields REIT

Strawberry Fields REIT, Inc. engages in the ownership, acquisition, development, and leasing of skilled nursing and certain other healthcare-related properties. The company was founded by Moishe Gubin in 2014 and is headquartered in South Bend, IN.