Financial Analysis: Creative Media & Community Trust Co. (NASDAQ:CMCT) & InnSuites Hospitality Trust (NYSE:IHT)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for InnSuites Hospitality Trust and Creative Media & Community Trust Co., as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
InnSuites Hospitality Trust	0	0	0	0	0.00
Creative Media & Community Trust Co.	0	1	0	0	2.00

Creative Media & Community Trust Co. has a consensus price target of $40.00, indicating a potential upside of 4,445.45%. Given Creative Media & Community Trust Co.’s stronger consensus rating and higher possible upside, analysts plainly believe Creative Media & Community Trust Co. is more favorable than InnSuites Hospitality Trust.

Dividends

InnSuites Hospitality Trust pays an annual dividend of $0.02 per share and has a dividend yield of 0.8%. Creative Media & Community Trust Co. pays an annual dividend of $1.60 per share and has a dividend yield of 181.8%. InnSuites Hospitality Trust pays out -20.0% of its earnings in the form of a dividend. Creative Media & Community Trust Co. pays out -5.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

2.5% of InnSuites Hospitality Trust shares are held by institutional investors. Comparatively, 28.3% of Creative Media & Community Trust Co. shares are held by institutional investors. 73.9% of InnSuites Hospitality Trust shares are held by insiders. Comparatively, 45.7% of Creative Media & Community Trust Co. 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.

Volatility and Risk

InnSuites Hospitality Trust has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500. Comparatively, Creative Media & Community Trust Co. has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares InnSuites Hospitality Trust and Creative Media & Community Trust Co.’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%
Creative Media & Community Trust Co.	-18.42%	N/A	-2.64%

Valuation & Earnings

This table compares InnSuites Hospitality Trust and Creative Media & Community Trust Co.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
InnSuites Hospitality Trust	$7.48 million	2.96	$200,000.00	($0.10)	-25.30
Creative Media & Community Trust Co.	$126.52 million	0.06	-$48.49 million	($28.77)	-0.03

InnSuites Hospitality Trust has higher earnings, but lower revenue than Creative Media & Community Trust Co.. InnSuites Hospitality Trust is trading at a lower price-to-earnings ratio than Creative Media & Community Trust Co., indicating that it is currently the more affordable of the two stocks.

Summary

Creative Media & Community Trust Co. beats InnSuites Hospitality Trust on 9 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 Creative Media & Community Trust Co.

Creative Media & Community Trust Corp. is a real estate investment trust that seeks to own, operate, and develop premier multifamily and creative office assets in vibrant and emerging communities throughout the United States. It operates through the following segments: Office, Hotel, and Lending. The Office segment consists of the rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The Hotel segment involves the operation of hotel properties. The Lending segment focuses on loans to small businesses. The company was founded in 1993 and is headquartered in Dallas, TX.