Choice Hotels International (NYSE:CHH) and Xenia Hotels & Resorts (NYSE:XHR) are both mid-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, profitability, dividends and analyst recommendations.
Choice Hotels International pays an annual dividend of $0.86 per share and has a dividend yield of 0.9%. Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.3%. Choice Hotels International pays out 22.1% of its earnings in the form of a dividend. Xenia Hotels & Resorts pays out 49.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Risk and Volatility
Choice Hotels International has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Earnings and Valuation
This table compares Choice Hotels International and Xenia Hotels & Resorts’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Choice Hotels International||$1.04 billion||5.18||$216.35 million||$3.89||24.90|
|Xenia Hotels & Resorts||$1.06 billion||2.22||$193.69 million||$2.22||9.40|
Choice Hotels International has higher earnings, but lower revenue than Xenia Hotels & Resorts. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than Choice Hotels International, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Choice Hotels International and Xenia Hotels & Resorts, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Choice Hotels International||2||5||1||0||1.88|
|Xenia Hotels & Resorts||1||3||1||0||2.00|
Choice Hotels International currently has a consensus target price of $87.00, indicating a potential downside of 10.19%. Xenia Hotels & Resorts has a consensus target price of $21.60, indicating a potential upside of 3.55%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Xenia Hotels & Resorts is more favorable than Choice Hotels International.
This table compares Choice Hotels International and Xenia Hotels & Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Choice Hotels International||19.43%||-174.81%||19.57%|
|Xenia Hotels & Resorts||12.23%||7.90%||4.53%|
Insider & Institutional Ownership
60.4% of Choice Hotels International shares are owned by institutional investors. Comparatively, 88.2% of Xenia Hotels & Resorts shares are owned by institutional investors. 24.9% of Choice Hotels International shares are owned by insiders. Comparatively, 1.6% of Xenia Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Choice Hotels International beats Xenia Hotels & Resorts on 8 of the 15 factors compared between the two stocks.
About Choice Hotels International
Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Cambria Hotels, V8 Hotel Köln @Motorworld, Quality Hotel Ostrava, Hotel Aquarius Venice, and Ascend Hotel Collection. It also develops and markets cloud-based technology products to the hotel industry. As of May 1, 2019, the company had approximately 7,000 hotels with 570,000 rooms in approximately 40 countries and territories. Choice Hotels International, Inc. was founded in 1939 and is based in Rockville, Maryland.
About Xenia Hotels & Resorts
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in uniquely positioned luxury and upper upscale hotels and resorts, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 40 hotels comprising 11,167 rooms across 17 states. 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®, Loews®, and Hilton®, as well as leading independent management companies including The Kessler Collection, Sage Hospitality, and Davidson Hotels & Resorts.
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