Critical Contrast: Sunstone Hotel Investors (NYSE:SHO) & Murano Global Investments (NASDAQ:MRNO)

Murano Global Investments (NASDAQ:MRNO) and Sunstone Hotel Investors (NYSE:SHO) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Murano Global Investments and Sunstone Hotel Investors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murano Global Investments	N/A	N/A	N/A
Sunstone Hotel Investors	19.51%	9.75%	5.80%

Analyst Ratings

This is a summary of current recommendations and price targets for Murano Global Investments and Sunstone Hotel Investors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murano Global Investments	0	0	0	0	N/A
Sunstone Hotel Investors	2	3	2	1	2.25

Sunstone Hotel Investors has a consensus price target of $11.00, suggesting a potential upside of 5.47%. Given Sunstone Hotel Investors’ higher probable upside, analysts clearly believe Sunstone Hotel Investors is more favorable than Murano Global Investments.

Insider & Institutional Ownership

11.8% of Murano Global Investments shares are held by institutional investors. Comparatively, 99.4% of Sunstone Hotel Investors shares are held by institutional investors. 71.2% of Murano Global Investments shares are held by company insiders. Comparatively, 1.1% of Sunstone Hotel Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Murano Global Investments has a beta of 0.11, indicating that its share price is 89% less volatile than the S&P 500. Comparatively, Sunstone Hotel Investors has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500.

Earnings & Valuation

This table compares Murano Global Investments and Sunstone Hotel Investors’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murano Global Investments	$6.31 million	14.88	-$8.71 million	N/A	N/A
Sunstone Hotel Investors	$986.48 million	2.15	$206.71 million	$0.90	11.59

Sunstone Hotel Investors has higher revenue and earnings than Murano Global Investments.

Summary

Sunstone Hotel Investors beats Murano Global Investments on 10 of the 12 factors compared between the two stocks.

About Murano Global Investments

HCM Acquisition Corp is a blank check company. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or related business combination with one or more businesses. HCM Acquisition Corp is based in Stamford, Connecticut.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc. is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.