Xenia Hotels & Resorts (XHR) & Summit Hotel Properties (INN) Financial Comparison
Xenia Hotels & Resorts (NYSE: XHR) and Summit Hotel Properties (NYSE:INN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
Volatility and Risk
Xenia Hotels & Resorts has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Summit Hotel Properties has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
This table compares Xenia Hotels & Resorts and Summit Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Xenia Hotels & Resorts||15.23%||8.34%||4.73%|
|Summit Hotel Properties||20.21%||8.96%||5.28%|
Institutional & Insider Ownership
68.6% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 95.7% of Summit Hotel Properties shares are held by institutional investors. 0.5% of Xenia Hotels & Resorts shares are held by insiders. Comparatively, 1.7% of Summit Hotel Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.2%. Summit Hotel Properties pays an annual dividend of $0.68 per share and has a dividend yield of 4.5%. Xenia Hotels & Resorts pays out 86.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Summit Hotel Properties pays out 82.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Xenia Hotels & Resorts has increased its dividend for 3 consecutive years and Summit Hotel Properties has increased its dividend for 2 consecutive years. Xenia Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Xenia Hotels & Resorts and Summit Hotel Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xenia Hotels & Resorts||$950.16 million||2.40||$85.85 million||$1.27||16.81|
|Summit Hotel Properties||$473.93 million||3.30||$107.80 million||$0.82||18.28|
Summit Hotel Properties has lower revenue, but higher earnings than Xenia Hotels & Resorts. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than Summit Hotel Properties, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Xenia Hotels & Resorts and Summit Hotel Properties, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Xenia Hotels & Resorts||0||3||2||0||2.40|
|Summit Hotel Properties||1||1||7||0||2.67|
Xenia Hotels & Resorts presently has a consensus price target of $21.40, indicating a potential upside of 0.23%. Summit Hotel Properties has a consensus price target of $17.19, indicating a potential upside of 14.66%. Given Summit Hotel Properties’ stronger consensus rating and higher possible upside, analysts plainly believe Summit Hotel Properties is more favorable than Xenia Hotels & Resorts.
Summit Hotel Properties beats Xenia Hotels & Resorts on 13 of the 17 factors compared between the two stocks.
Xenia Hotels & Resorts Company Profile
Xenia Hotels & Resorts, Inc. (Xenia) is a self-advised and self-administered real estate investment trust (REIT). The Company invests in premium full service, lifestyle and urban upscale hotels, with a focus on var ious markets, as well as leisure destinations in the United States. As of October 4, 2017, the Company owned 39 hotels, 37 of which are completely owned, comprising 11,533 rooms, across 18 states and the District of Columbia, including a majority interest in two hotels owned through two investments in real estate entities. The Company’s hotels are primarily operated and/or licensed by Marriott, Kimpton, Hyatt, Aston, Fairmont, Hilton and Loews, as well as independent management companies. As of May 30, 2017, the Company’s portfolio included Andaz Napa, Andaz San Diego, Andaz Savannah, Aston Waikiki Beach Hotel, Bohemian Hotel Celebration, (an Autograph Collection Hotel) and Bohemian Hotel Savannah Riverfront, (an Autograph Collection Hotel).
Summit Hotel Properties Company Profile
Summit Hotel Properties, Inc. is a real estate investment trust (REIT). The Company is focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the United States lodging industry. The Company’s portfolio consists of 83 hotels with a total of 12,242 guestrooms located in 26 states. The Company’s hotels are located in markets, such as business and corporate headquarters, retail centers, airports and tourist attractions. The Company’s portfolio is located in urban and suburban markets. Based on total number of guestrooms, approximately 89% of the Company’s portfolio is positioned in over 50 metropolitan statistical areas (MSAs), and approximately 96% is located within over 100 MSAs. Based on total number of guestrooms, approximately 99% of the Company’s hotels operate under franchise brands owned by Marriott International, Inc., Hilton Worldwide, InterContinental Hotels Group, and an affiliate of Hyatt Hotels Corporation.
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