Xenia Hotels & Resorts (NYSE:XHR – Get Free Report) and Diversified Healthcare Trust (NASDAQ:DHC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Profitability
This table compares Xenia Hotels & Resorts and Diversified Healthcare Trust’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xenia Hotels & Resorts | 6.20% | 5.53% | 2.38% |
| Diversified Healthcare Trust | -21.10% | -18.75% | -7.09% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Xenia Hotels & Resorts and Diversified Healthcare Trust, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xenia Hotels & Resorts | 0 | 0 | 3 | 0 | 3.00 |
| Diversified Healthcare Trust | 1 | 2 | 2 | 1 | 2.50 |
Volatility and Risk
Xenia Hotels & Resorts has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Diversified Healthcare Trust has a beta of 2.33, meaning that its stock price is 133% more volatile than the S&P 500.
Insider and Institutional Ownership
92.4% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 76.0% of Diversified Healthcare Trust shares are held by institutional investors. 4.4% of Xenia Hotels & Resorts shares are held by company insiders. Comparatively, 10.2% of Diversified Healthcare Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Xenia Hotels & Resorts and Diversified Healthcare Trust”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xenia Hotels & Resorts | $1.08 billion | 1.45 | $63.09 million | $0.70 | 24.18 |
| Diversified Healthcare Trust | $1.54 billion | 1.40 | -$285.89 million | ($1.33) | -6.69 |
Xenia Hotels & Resorts has higher earnings, but lower revenue than Diversified Healthcare Trust. Diversified Healthcare 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.
Dividends
Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. Diversified Healthcare Trust pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. 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. Diversified Healthcare Trust pays out -3.0% of its earnings in the form of a dividend. Xenia Hotels & Resorts has raised 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.
Summary
Xenia Hotels & Resorts beats Diversified Healthcare Trust on 13 of the 18 factors compared between the two stocks.
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.
About Diversified Healthcare Trust
Diversified Healthcare Trust is a real estate investment trust, which engages in the ownership of senior living communities, medical office buildings, and wellness centers. It operates through the following segments: Office Portfolio, Senior Housing Operating Portfolio (SHOP), and Non-Segment. The Office Portfolio segment consists of medical office properties leased to medical providers and other medical related businesses, as well as life science properties leased to biotech laboratories and other similar tenants. The SHOP segment manages senior living communities that offers short term and long term residential care, and other services for residents where it pay fees to the operator to manage the communities for its account. The company was founded on December 16, 1998 and is headquartered in Newton, MA.
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