Financial Contrast: Granite Real Estate (NYSE:GRP.U) and Xenia Hotels & Resorts (NYSE:XHR)

Granite Real Estate (NYSE:GRP.U) 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 risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and recommmendations for Granite Real Estate and Xenia Hotels & Resorts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Real Estate	0	0	0	0	0.00
Xenia Hotels & Resorts	1	2	3	0	2.33

Xenia Hotels & Resorts has a consensus price target of $13.20, indicating a potential downside of 1.36%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts clearly believe Xenia Hotels & Resorts is more favorable than Granite Real Estate.

Insider and Institutional Ownership

57.1% of Granite Real Estate shares are owned by institutional investors. Comparatively, 92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. 0.3% of Granite Real Estate shares are owned by insiders. Comparatively, 3.2% of Xenia Hotels & Resorts shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Granite Real Estate and Xenia Hotels & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Real Estate	$415.37 million	8.28	$263.17 million	$3.86	14.70
Xenia Hotels & Resorts	$1.08 billion	1.19	$16.14 million	$0.63	21.24

Granite Real Estate has higher earnings, but lower revenue than Xenia Hotels & Resorts. Granite Real Estate 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.

Profitability

This table compares Granite Real Estate and Xenia Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Real Estate	56.61%	6.01%	3.52%
Xenia Hotels & Resorts	5.86%	4.95%	2.19%

Summary

Xenia Hotels & Resorts beats Granite Real Estate on 7 of the 13 factors compared between the two stocks.

About Granite Real Estate

Granite Real Estate Investment Trust is engaged in the ownership and management of predominantly industrial properties in Canada, the United States, Mexico and Europe. The Company owns and manages rental income properties. Its services include sourcing and real estate acquisition, site development, assisting with government approvals and re-zoning to specific uses, build-to-suit construction, property renovation, project management and long-term leasing. Granite Real Estate Investment Trust, formerly known as Granite Real Estate Inc., is based in Toronto, Canada.

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.