Head-To-Head Analysis: Vornado Realty Trust (NYSE:VNO) & Xenia Hotels & Resorts (NYSE:XHR)

Xenia Hotels & Resorts (NYSE:XHR) and Vornado Realty Trust (NYSE:VNO) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Profitability

This table compares Xenia Hotels & Resorts and Vornado Realty Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	6.20%	5.53%	2.38%
Vornado Realty Trust	43.99%	15.82%	5.07%

Risk and Volatility

Xenia Hotels & Resorts has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Vornado Realty Trust has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Institutional and Insider Ownership

92.4% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 90.0% of Vornado Realty Trust shares are held by institutional investors. 4.4% of Xenia Hotels & Resorts shares are held by company insiders. Comparatively, 9.0% of Vornado Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Xenia Hotels & Resorts and Vornado Realty Trust”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	1.70	$63.09 million	$0.70	28.42
Vornado Realty Trust	$1.81 billion	4.16	$904.96 million	$3.64	11.01

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

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 2.8%. Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.8%. Xenia Hotels & Resorts pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vornado Realty Trust pays out 20.3% of its earnings in the form of a dividend. Xenia Hotels & Resorts has raised its dividend for 3 consecutive years. Xenia Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Xenia Hotels & Resorts and Vornado Realty Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	0	1	3	0	2.75
Vornado Realty Trust	1	8	4	0	2.23

Xenia Hotels & Resorts currently has a consensus price target of $19.25, suggesting a potential downside of 3.25%. Vornado Realty Trust has a consensus price target of $36.33, suggesting a potential downside of 9.30%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Xenia Hotels & Resorts is more favorable than Vornado Realty Trust.

Summary

Vornado Realty Trust beats Xenia Hotels & Resorts on 11 of the 17 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 Vornado Realty Trust

Vornado Realty Trust is a fully – integrated equity real estate investment trust.