Reviewing Xenia Hotels & Resorts (NYSE:XHR) and COPT Defense Properties (NYSE:CDP)

Xenia Hotels & Resorts (NYSE:XHR) and COPT Defense Properties (NYSE:CDP) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Profitability

This table compares Xenia Hotels & Resorts and COPT Defense Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	5.85%	5.13%	2.21%
COPT Defense Properties	19.94%	9.82%	3.46%

Earnings & Valuation

This table compares Xenia Hotels & Resorts and COPT Defense Properties”s 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	1.31	$16.14 million	$0.64	23.91
COPT Defense Properties	$763.92 million	4.71	$152.32 million	$1.35	23.56

COPT Defense Properties has lower revenue, but higher earnings than Xenia Hotels & Resorts. COPT Defense Properties 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.

Insider & Institutional Ownership

92.4% of Xenia Hotels & Resorts shares are held by institutional investors. 3.2% of Xenia Hotels & Resorts shares are held by company insiders. Comparatively, 1.4% of COPT Defense Properties shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. COPT Defense Properties pays an annual dividend of $1.22 per share and has a dividend yield of 3.8%. Xenia Hotels & Resorts pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. COPT Defense Properties pays out 90.4% 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 3 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Xenia Hotels & Resorts and COPT Defense Properties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	1	2	3	0	2.33
COPT Defense Properties	0	3	5	0	2.63

Xenia Hotels & Resorts presently has a consensus target price of $14.00, suggesting a potential downside of 8.53%. COPT Defense Properties has a consensus target price of $33.63, suggesting a potential upside of 5.73%. Given COPT Defense Properties’ stronger consensus rating and higher probable upside, analysts clearly believe COPT Defense Properties is more favorable than Xenia Hotels & Resorts.

Volatility and Risk

Xenia Hotels & Resorts has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, COPT Defense Properties has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Summary

COPT Defense Properties beats Xenia Hotels & Resorts on 10 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 COPT Defense Properties

COPT Defense Properties is a real estate investment trust. It acquires, develops, manages, sells, and leases out office properties and data centers. The firm operates through the following segments: Defense/Information Technology Locations, Regional Office, Wholesale Data Center, and Other. The company was founded on January 22,1988 and is headquartered in Columbia, MD.