Vornado Realty Trust (NYSE:VNO) vs. Xenia Hotels & Resorts (NYSE:XHR) Financial Contrast

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

Volatility and Risk

Vornado Realty Trust has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Profitability

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

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

Dividends

Vornado Realty Trust pays an annual dividend of $0.74 per share and has a dividend yield of 1.9%. Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Vornado Realty Trust pays out 20.3% of its earnings in the form of a dividend. 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. Xenia Hotels & Resorts has increased 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 summary of recent ratings and recommmendations for Vornado Realty Trust and Xenia Hotels & Resorts, as reported by MarketBeat.com.

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

Vornado Realty Trust currently has a consensus target price of $36.33, indicating a potential downside of 7.16%. Xenia Hotels & Resorts has a consensus target price of $19.25, indicating a potential downside of 7.07%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Xenia Hotels & Resorts is more favorable than Vornado Realty Trust.

Institutional and Insider Ownership

90.0% of Vornado Realty Trust shares are owned by institutional investors. Comparatively, 92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. 9.0% of Vornado Realty Trust shares are owned by insiders. Comparatively, 4.4% of Xenia Hotels & Resorts 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.

Valuation & Earnings

This table compares Vornado Realty Trust and Xenia Hotels & Resorts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vornado Realty Trust	$1.81 billion	4.07	$904.96 million	$3.64	10.75
Xenia Hotels & Resorts	$1.08 billion	1.77	$63.09 million	$0.70	29.59

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.

Summary

Vornado Realty Trust beats Xenia Hotels & Resorts on 11 of the 17 factors compared between the two stocks.

About Vornado Realty Trust

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

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.