Pebblebrook Hotel Trust (NYSE: PEB) and Xenia Hotels & Resorts (NYSE:XHR) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Institutional & Insider Ownership
64.3% of Xenia Hotels & Resorts shares are held by institutional investors. 2.0% of Pebblebrook Hotel Trust shares are held by company insiders. Comparatively, 0.3% of Xenia Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Pebblebrook Hotel Trust and Xenia Hotels & Resorts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pebblebrook Hotel Trust||5.09%||2.59%||1.45%|
|Xenia Hotels & Resorts||15.99%||8.91%||5.09%|
Pebblebrook Hotel Trust pays an annual dividend of $1.52 per share and has a dividend yield of 4.8%. Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.6%. Pebblebrook Hotel Trust pays out 506.7% 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 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. Xenia Hotels & Resorts has increased its dividend for 4 consecutive years. Xenia Hotels & Resorts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares Pebblebrook Hotel Trust and Xenia Hotels & Resorts’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pebblebrook Hotel Trust||$796.77 million||2.77||$242.63 million||$0.30||106.54|
|Xenia Hotels & Resorts||$916.60 million||2.27||$262.30 million||$1.35||14.44|
Xenia Hotels & Resorts has higher revenue and earnings than Pebblebrook Hotel Trust. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than Pebblebrook Hotel Trust, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Pebblebrook Hotel Trust and Xenia Hotels & Resorts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pebblebrook Hotel Trust||2||3||3||0||2.13|
|Xenia Hotels & Resorts||0||2||2||0||2.50|
Pebblebrook Hotel Trust presently has a consensus price target of $32.10, suggesting a potential upside of 0.44%. Xenia Hotels & Resorts has a consensus price target of $21.00, suggesting a potential upside of 7.69%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher possible upside, analysts plainly believe Xenia Hotels & Resorts is more favorable than Pebblebrook Hotel Trust.
Volatility and Risk
Pebblebrook Hotel Trust has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Xenia Hotels & Resorts beats Pebblebrook Hotel Trust on 12 of the 17 factors compared between the two stocks.
About Pebblebrook Hotel Trust
Pebblebrook Hotel Trust is an internally managed hotel investment company. The Company is a real estate investment trust (REIT) that acquires and invests in hotel properties located primarily in cities of the United States. As of December 31, 2016, the Company owned 29 hotels with a total of 7,219 guest rooms. The hotels are located in the markets: Atlanta (Buckhead), Georgia; Boston, Massachusetts; Miami (Coral Gables), Florida; Minneapolis, Minnesota; Naples, Florida; Nashville, Tennessee; New York, New York; Philadelphia, Pennsylvania; Portland, Oregon; San Diego, California; San Francisco, California; Santa Monica, California; Seattle, Washington; Stevenson, Washington; Washington, D.C.; West Hollywood, California, and Los Angeles (Beverly Hills), California. The Company’s assets are held by, and all of the operations are conducted through, Pebblebrook Hotel, L.P. (the Operating Partnership).
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).
What are top analysts saying about Pebblebrook Hotel Trust? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Pebblebrook Hotel Trust and related companies.