Xenia Hotels & Resorts (NYSE: XHR) and FelCor Lodging Trust (NYSE:FCH) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.
Institutional & Insider Ownership
66.3% of Xenia Hotels & Resorts shares are owned by institutional investors. Comparatively, 77.1% of FelCor Lodging Trust shares are owned by institutional investors. 0.3% of Xenia Hotels & Resorts shares are owned by company insiders. Comparatively, 3.3% of FelCor Lodging Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Xenia Hotels & Resorts and FelCor Lodging Trust, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Xenia Hotels & Resorts||0||2||2||0||2.50|
|FelCor Lodging Trust||0||2||1||0||2.33|
Xenia Hotels & Resorts currently has a consensus target price of $21.00, suggesting a potential upside of 6.44%. FelCor Lodging Trust has a consensus target price of $7.25, suggesting a potential upside of 2.11%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher possible upside, research analysts clearly believe Xenia Hotels & Resorts is more favorable than FelCor Lodging Trust.
Volatility and Risk
Xenia Hotels & Resorts has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, FelCor Lodging Trust has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Earnings & Valuation
This table compares Xenia Hotels & Resorts and FelCor Lodging Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Xenia Hotels & Resorts||$916.60 million||2.30||$262.30 million||$1.35||14.61|
|FelCor Lodging Trust||$828.93 million||1.19||$207.52 million||($0.49)||-14.49|
Xenia Hotels & Resorts has higher revenue and earnings than FelCor Lodging Trust. FelCor Lodging 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.
This table compares Xenia Hotels & Resorts and FelCor Lodging Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Xenia Hotels & Resorts||15.99%||8.91%||5.09%|
|FelCor Lodging Trust||-5.15%||-25.32%||-1.92%|
Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.6%. FelCor Lodging Trust pays an annual dividend of $0.24 per share and has a dividend yield of 3.4%. Xenia Hotels & Resorts pays out 81.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FelCor Lodging Trust pays out -49.0% of its earnings in the form of a dividend. Xenia Hotels & Resorts has raised 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.
Xenia Hotels & Resorts beats FelCor Lodging Trust on 12 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 37 hotels, 35 of which are completely owned, comprising 10,783 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).
About FelCor Lodging Trust
FelCor Lodging Trust Incorporated is a real estate investment trust (REIT). The Company, through its subsidiary, FelCor Lodging Limited Partnership, held ownership interests in 39 hotels with 11,500 rooms, as of December 31, 2016. The Company sells, acquires, rebrands and redevelops hotels. As of December 31, 2016, the Company’s hotels were located in 14 states of the United States. The Company holds a portfolio of hotels managed by Hilton Worldwide (Hilton); Wyndham Worldwide (Wyndham); Marriott International Inc. (Marriott); InterContinental Hotels Group (IHG); AccorHotels Group, Highgate Hotels (Highgate), SBE and Aimbridge Hospitality. The Company’s hotels include Embassy Suites Atlanta-Buckhead; DoubleTree Suites by Hilton Austin; Embassy Suites Birmingham; The Fairmont Copley Plaza, Boston; Wyndham Boston Beacon Hill; Embassy Suites Boston-Marlborough, and Sheraton Burlington Hotel & Conference Center.
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