Head to Head Comparison: PennyMac Mortgage Investment Trust (NYSE:PMT) and InnSuites Hospitality Trust (NYSE:IHT)

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

Insider & Institutional Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. Comparatively, 67.4% of PennyMac Mortgage Investment Trust shares are held by institutional investors. 2.0% of InnSuites Hospitality Trust shares are held by insiders. Comparatively, 0.9% of PennyMac Mortgage Investment Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares InnSuites Hospitality Trust and PennyMac Mortgage Investment Trust’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.48 million	2.18	$200,000.00	($0.02)	-90.50
PennyMac Mortgage Investment Trust	$429.02 million	2.78	$199.65 million	$1.50	9.14

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

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 1.1%. PennyMac Mortgage Investment Trust pays an annual dividend of $1.60 per share and has a dividend yield of 11.7%. InnSuites Hospitality Trust pays out -100.0% of its earnings in the form of a dividend. PennyMac Mortgage Investment Trust pays out 106.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings for InnSuites Hospitality Trust and PennyMac Mortgage Investment Trust, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	N/A
PennyMac Mortgage Investment Trust	0	4	2	0	2.33

PennyMac Mortgage Investment Trust has a consensus target price of $14.92, suggesting a potential upside of 8.80%. Given PennyMac Mortgage Investment Trust’s higher possible upside, analysts plainly believe PennyMac Mortgage Investment Trust is more favorable than InnSuites Hospitality Trust.

Profitability

This table compares InnSuites Hospitality Trust and PennyMac Mortgage Investment Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
InnSuites Hospitality Trust	-2.14%	-5.38%	-1.02%
PennyMac Mortgage Investment Trust	45.19%	13.25%	1.43%

Risk & Volatility

InnSuites Hospitality Trust has a beta of 0.06, suggesting that its share price is 94% less volatile than the S&P 500. Comparatively, PennyMac Mortgage Investment Trust has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Summary

PennyMac Mortgage Investment Trust beats InnSuites Hospitality Trust on 13 of the 15 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 PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust, through its subsidiary, primarily invests in mortgage-related assets in the United States. The company operates through: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, Correspondent Production segments. Its Credit Sensitive Strategies segment invests in credit risk transfer (CRT) agreements, CRT securities, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The company's Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency MBS, as well as related interest rate hedging activities. Its Correspondent Production segment is involved in purchasing, pooling, and reselling newly originated prime credit residential loans directly or in the form of MBS. The company primarily sells its loans to government-sponsored entities or PennyMac Loan Services, LLC. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders. The company was incorporated in 2009 and is headquartered in Westlake Village, California.