Xenia Hotels & Resorts (NYSE:XHR – Get Free Report) and Medalist Diversified REIT (NASDAQ:MDRR – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Dividends
Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.8%. Medalist Diversified REIT pays an annual dividend of $0.27 per share and has a dividend yield of 2.0%. Xenia Hotels & Resorts pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medalist Diversified REIT pays out -14.9% of its earnings in the form of a dividend. Xenia Hotels & Resorts has raised its dividend for 3 consecutive years and Medalist Diversified REIT 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.
Earnings & Valuation
This table compares Xenia Hotels & Resorts and Medalist Diversified REIT”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Xenia Hotels & Resorts | $1.04 billion | 1.36 | $16.14 million | $0.63 | 23.36 |
| Medalist Diversified REIT | $9.73 million | 1.88 | $30,000.00 | ($1.81) | -7.49 |
Xenia Hotels & Resorts has higher revenue and earnings than Medalist Diversified REIT. Medalist Diversified REIT 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.
Analyst Recommendations
This is a breakdown of recent recommendations for Xenia Hotels & Resorts and Medalist Diversified REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Xenia Hotels & Resorts | 1 | 1 | 3 | 0 | 2.40 |
| Medalist Diversified REIT | 0 | 0 | 0 | 0 | 0.00 |
Xenia Hotels & Resorts currently has a consensus target price of $13.20, indicating a potential downside of 10.30%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Xenia Hotels & Resorts is more favorable than Medalist Diversified REIT.
Institutional & Insider Ownership
92.4% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 17.4% of Medalist Diversified REIT shares are held by institutional investors. 3.2% of Xenia Hotels & Resorts shares are held by insiders. Comparatively, 43.8% of Medalist Diversified REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Xenia Hotels & Resorts and Medalist Diversified REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Xenia Hotels & Resorts | 5.86% | 4.95% | 2.19% |
| Medalist Diversified REIT | -23.54% | -10.25% | -2.97% |
Risk & Volatility
Xenia Hotels & Resorts has a beta of 1.72, meaning that its share price is 72% more volatile than the S&P 500. Comparatively, Medalist Diversified REIT has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
Summary
Xenia Hotels & Resorts beats Medalist Diversified REIT on 14 of the 17 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 Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
Receive News & Ratings for Xenia Hotels & Resorts Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Xenia Hotels & Resorts and related companies with MarketBeat.com's FREE daily email newsletter.
