Xenia Hotels & Resorts (NYSE: XHR) and LaSalle Hotel Properties (NYSE:LHO) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, analyst recommendations and profitabiliy.
Earnings & Valuation
This table compares Xenia Hotels & Resorts and LaSalle Hotel Properties’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Xenia Hotels & Resorts||$933.59 million||2.29||$272.65 million||$0.94||21.30|
|LaSalle Hotel Properties||$1.22 billion||2.90||$388.39 million||$2.69||11.61|
LaSalle Hotel Properties has higher revenue and earnings than Xenia Hotels & Resorts. LaSalle Hotel Properties 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.
Risk and Volatility
Xenia Hotels & Resorts has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, LaSalle Hotel Properties has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.
Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.5%. LaSalle Hotel Properties pays an annual dividend of $1.80 per share and has a dividend yield of 5.8%. Xenia Hotels & Resorts pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LaSalle Hotel Properties pays out 66.9% of its earnings in the form of a dividend. LaSalle Hotel Properties has raised its dividend for 5 consecutive years. LaSalle Hotel Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent recommendations for Xenia Hotels & Resorts and LaSalle Hotel Properties, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Xenia Hotels & Resorts||0||3||2||0||2.40|
|LaSalle Hotel Properties||1||12||2||0||2.07|
Xenia Hotels & Resorts currently has a consensus price target of $21.00, indicating a potential upside of 4.90%. LaSalle Hotel Properties has a consensus price target of $28.54, indicating a potential downside of 8.61%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Xenia Hotels & Resorts is more favorable than LaSalle Hotel Properties.
This table compares Xenia Hotels & Resorts and LaSalle Hotel Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Xenia Hotels & Resorts||11.02%||6.29%||3.52%|
|LaSalle Hotel Properties||26.61%||13.02%||8.31%|
Insider & Institutional Ownership
64.2% of Xenia Hotels & Resorts shares are owned by institutional investors. 0.3% of Xenia Hotels & Resorts shares are owned by insiders. Comparatively, 0.4% of LaSalle Hotel Properties shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
LaSalle Hotel Properties beats Xenia Hotels & Resorts on 13 of the 16 factors compared between the two stocks.
About Xenia Hotels & Resorts
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 May 30, 2017, the Company owned 42 hotels, 40 of which are completely owned, comprising 11,595 rooms, across 20 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).
About LaSalle Hotel Properties
LaSalle Hotel Properties is a self-administered and self-managed real estate investment trust. The Company primarily buys, owns, redevelops and leases upscale and luxury full-service hotels located in convention, resort and urban business markets. As of December 31, 2016, the Company owned interests in 46 hotels with approximately 11,450 guest rooms located in nine states of the United States and the District of Columbia (DC). As of December 31, 2016, the Company’s properties included Hotel Amarano Burbank; Hilton San Diego Gaslamp Quarter; Hotel Solamar; San Diego Paradise Point Resort and Spa; The Hilton San Diego Resort and Spa; Harbor Court Hotel; The Marker San Francisco; Chamberlain West Hollywood; Le Montrose Suite Hotel; The Grafton on Sunset; Hotel George; Hotel Rouge; Mason & Rook Hotel; The Donovan; The Liaison Capitol Hill; The Marker Waterfront Resort; Hotel Chicago; Onyx Hotel; Park Central Hotel New York; The Heathman Hotel; Westin Philadelphia, and Lansdowne Resort.
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