Contrasting Xenia Hotels & Resorts (NYSE:XHR) & Mackenzie Realty Capital (NASDAQ:MKZR)

Xenia Hotels & Resorts (NYSE:XHR) and Mackenzie Realty Capital (NASDAQ:MKZR) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.

Valuation and Earnings

This table compares Xenia Hotels & Resorts and Mackenzie Realty Capital”s gross revenue, earnings per share (EPS) 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	$0.56	26.56
Mackenzie Realty Capital	$22.06 million	0.37	-$25.92 million	($10.80)	-0.40

Xenia Hotels & Resorts has higher revenue and earnings than Mackenzie Realty Capital. Mackenzie Realty Capital 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.

Volatility and Risk

Xenia Hotels & Resorts has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Mackenzie Realty Capital has a beta of -1.16, suggesting that its share price is 216% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Xenia Hotels & Resorts and Mackenzie Realty Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	1	2	3	0	2.33
Mackenzie Realty Capital	1	0	0	0	1.00

Xenia Hotels & Resorts presently has a consensus price target of $14.00, indicating a potential downside of 5.88%. Given Xenia Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts clearly believe Xenia Hotels & Resorts is more favorable than Mackenzie Realty Capital.

Profitability

This table compares Xenia Hotels & Resorts and Mackenzie Realty Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	5.24%	4.50%	1.97%
Mackenzie Realty Capital	N/A	-15.16%	-6.24%

Institutional and Insider Ownership

92.4% of Xenia Hotels & Resorts shares are held by institutional investors. 3.2% of Xenia Hotels & Resorts shares are held by insiders. Comparatively, 6.3% of Mackenzie Realty Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Xenia Hotels & Resorts beats Mackenzie Realty Capital on 13 of the 14 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 Mackenzie Realty Capital

MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.