Critical Analysis: Whitestone REIT (NYSE:WSR) versus Ryman Hospitality Properties (NYSE:RHP)

Whitestone REIT (NYSE:WSR) and Ryman Hospitality Properties (NYSE:RHP) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Profitability

This table compares Whitestone REIT and Ryman Hospitality Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Whitestone REIT	28.16%	10.10%	3.89%
Ryman Hospitality Properties	9.58%	34.50%	4.19%

Risk & Volatility

Whitestone REIT has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Ryman Hospitality Properties has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Dividends

Whitestone REIT pays an annual dividend of $0.54 per share and has a dividend yield of 3.5%. Ryman Hospitality Properties pays an annual dividend of $4.80 per share and has a dividend yield of 4.7%. Whitestone REIT pays out 63.5% of its earnings in the form of a dividend. Ryman Hospitality Properties pays out 127.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Whitestone REIT has raised its dividend for 5 consecutive years and Ryman Hospitality Properties has raised its dividend for 2 consecutive years.

Institutional and Insider Ownership

69.5% of Whitestone REIT shares are held by institutional investors. Comparatively, 94.5% of Ryman Hospitality Properties shares are held by institutional investors. 3.2% of Whitestone REIT shares are held by company insiders. Comparatively, 5.0% of Ryman Hospitality Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Whitestone REIT and Ryman Hospitality Properties”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Whitestone REIT	$154.28 million	5.04	$36.89 million	$0.85	17.95
Ryman Hospitality Properties	$2.34 billion	2.78	$271.64 million	$3.78	27.28

Ryman Hospitality Properties has higher revenue and earnings than Whitestone REIT. Whitestone REIT is trading at a lower price-to-earnings ratio than Ryman Hospitality Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Whitestone REIT and Ryman Hospitality Properties, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Whitestone REIT	0	0	5	1	3.17
Ryman Hospitality Properties	0	2	10	0	2.83

Whitestone REIT presently has a consensus price target of $16.25, indicating a potential upside of 6.52%. Ryman Hospitality Properties has a consensus price target of $110.18, indicating a potential upside of 6.85%. Given Ryman Hospitality Properties’ higher possible upside, analysts plainly believe Ryman Hospitality Properties is more favorable than Whitestone REIT.

Summary

Ryman Hospitality Properties beats Whitestone REIT on 12 of the 18 factors compared between the two stocks.

About Whitestone REIT

Whitestone REIT (NYSE: WSR) is a community-centered real estate investment trust (REIT) that acquires, owns, operates, and develops open-air, retail centers located in some of the fastest growing markets in the country: Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio. Our centers are convenience focused: merchandised with a mix of service-oriented tenants providing food (restaurants and grocers), self-care (health and fitness), services (financial and logistics), education and entertainment to the surrounding communities. The Company believes its strong community connections and deep tenant relationships are key to the success of its current centers and its acquisition strategy.

About Ryman Hospitality Properties

Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading lodging and hospitality real estate investment trust that specializes in upscale convention center resorts and entertainment experiences. The Company's holdings include Gaylord Opryland Resort & Convention Center; Gaylord Palms Resort & Convention Center; Gaylord Texan Resort & Convention Center; Gaylord National Resort & Convention Center; and Gaylord Rockies Resort & Convention Center, five of the top seven largest non-gaming convention center hotels in the United States based on total indoor meeting space. The Company also owns the JW Marriott San Antonio Hill Country Resort & Spa as well as two ancillary hotels adjacent to our Gaylord Hotels properties. The Company's hotel portfolio is managed by Marriott International and includes a combined total of 11,414 rooms as well as more than 3 million square feet of total indoor and outdoor meeting space in top convention and leisure destinations across the country. RHP also owns a 70% controlling ownership interest in Opry Entertainment Group (OEG), which is composed of entities owning a growing collection of iconic and emerging country music brands, including the Grand Ole Opry, Ryman Auditorium, WSM 650 AM, Ole Red, Nashville-area attractions, and Block 21, a mixed-use entertainment, lodging, office and retail complex, including the W Austin Hotel and the ACL Live at the Moody Theater, located in downtown Austin, Texas. RHP operates OEG as its Entertainment segment in a taxable REIT subsidiary, and its results are consolidated in the Company's financial results.