Xenia Hotels & Resorts (NYSE:XHR) and Red Lion Hotels (NYSE:RLH) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitability, earnings, dividends, risk and analyst recommendations.
This is a breakdown of recent recommendations and price targets for Xenia Hotels & Resorts and Red Lion Hotels, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Xenia Hotels & Resorts||0||4||2||0||2.33|
|Red Lion Hotels||0||0||1||0||3.00|
Xenia Hotels & Resorts currently has a consensus target price of $25.00, indicating a potential upside of 6.02%. Red Lion Hotels has a consensus target price of $16.25, indicating a potential upside of 30.00%. Given Red Lion Hotels’ stronger consensus rating and higher probable upside, analysts clearly believe Red Lion Hotels is more favorable than Xenia Hotels & Resorts.
Earnings and Valuation
This table compares Xenia Hotels & Resorts and Red Lion Hotels’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Xenia Hotels & Resorts||$945.28 million||2.79||$98.86 million||$2.06||11.45|
|Red Lion Hotels||$171.93 million||1.76||$580,000.00||N/A||N/A|
Xenia Hotels & Resorts has higher revenue and earnings than Red Lion Hotels.
This table compares Xenia Hotels & Resorts and Red Lion Hotels’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Xenia Hotels & Resorts||10.33%||6.23%||3.40%|
|Red Lion Hotels||2.80%||-1.97%||-1.18%|
Insider & Institutional Ownership
76.3% of Xenia Hotels & Resorts shares are owned by institutional investors. Comparatively, 78.6% of Red Lion Hotels shares are owned by institutional investors. 0.9% of Xenia Hotels & Resorts shares are owned by insiders. Comparatively, 19.7% of Red Lion Hotels shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers 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 4.7%. Red Lion Hotels does not pay a dividend. Xenia Hotels & Resorts pays out 53.4% of its earnings in the form of a dividend. Xenia Hotels & Resorts has increased its dividend for 2 consecutive years.
Volatility and Risk
Xenia Hotels & Resorts has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Red Lion Hotels has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Xenia Hotels & Resorts beats Red Lion Hotels on 10 of the 15 factors compared between the two stocks.
About Xenia Hotels & Resorts
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 38 hotels, including 36 wholly owned hotels, comprising 10,852 rooms, across 17 states and the District of Columbia. Xenia's hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Hilton, and Loews, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, and Davidson Hotels & Resorts.
About Red Lion Hotels
Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States. It operates in two segments, Company Operated Hotels and Franchised Hotels. The company owns, manages, and franchises upscale, midscale, and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, and Country Hearth Inns & Suites brands; America's Best Inn & Suites, Jameson Inns, Lexington Hotels & Inns, and 3 Palm Hotels brands; and Value Inn Worldwide and Value Hotel Worldwide brands. As of December 31, 2017, it had a network of 1,061 franchised hotels, including a total of 65,200 rooms. The company was formerly known as WestCoast Hospitality Corporation and changed its name to Red Lion Hotels Corporation in September 2005. Red Lion Hotels Corporation was founded in 1937 and is headquartered in Denver, Colorado.
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