Financial Analysis: Xenia Hotels & Resorts (NYSE:XHR) and BRAEMAR HOTELS & RESORTS (NYSE:BHR)

Xenia Hotels & Resorts (NYSE:XHR) and BRAEMAR HOTELS & RESORTS (NYSE:BHR) are both small-cap real estate companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares Xenia Hotels & Resorts and BRAEMAR HOTELS & RESORTS”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenia Hotels & Resorts	$1.08 billion	1.53	$63.09 million	($0.07)	-255.50
BRAEMAR HOTELS & RESORTS	$704.02 million	0.17	-$22.32 million	($0.73)	-2.34

Xenia Hotels & Resorts has higher revenue and earnings than BRAEMAR HOTELS & RESORTS. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than BRAEMAR HOTELS & RESORTS, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xenia Hotels & Resorts and BRAEMAR HOTELS & RESORTS’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	-0.66%	-0.61%	-0.26%
BRAEMAR HOTELS & RESORTS	-0.45%	-1.92%	-0.17%

Analyst Recommendations

This is a summary of current recommendations and price targets for Xenia Hotels & Resorts and BRAEMAR HOTELS & RESORTS, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	0	2	2	0	2.50
BRAEMAR HOTELS & RESORTS	1	2	0	0	1.67

Xenia Hotels & Resorts currently has a consensus price target of $20.12, indicating a potential upside of 12.52%. BRAEMAR HOTELS & RESORTS has a consensus price target of $2.50, indicating a potential upside of 46.63%. Given BRAEMAR HOTELS & RESORTS’s higher possible upside, analysts clearly believe BRAEMAR HOTELS & RESORTS is more favorable than Xenia Hotels & Resorts.

Risk & Volatility

Xenia Hotels & Resorts has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, BRAEMAR HOTELS & RESORTS has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. Comparatively, 64.8% of BRAEMAR HOTELS & RESORTS shares are owned by institutional investors. 4.4% of Xenia Hotels & Resorts shares are owned by insiders. Comparatively, 8.2% of BRAEMAR HOTELS & RESORTS shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Xenia Hotels & Resorts beats BRAEMAR HOTELS & RESORTS on 9 of the 14 factors compared between the two stocks.

About Xenia Hotels & Resorts

Xenia Hotels & Resorts, Inc. is a real estate investment trust, which engages in the provision of investment in luxury and upper upscale hotels and resorts. It also owns a diversified portfolio of lodging properties operated by Marriott, Kimpton, Hyatt, Aston, Fairmong, and Loews. The company was founded in 2007 and is headquartered in Orlando, FL.

About BRAEMAR HOTELS & RESORTS

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).