Xenia Hotels & Resorts (NASDAQ: PNK) and Pinnacle Entertainment (NASDAQ:PNK) are both mid-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Insider and Institutional Ownership

76.4% of Xenia Hotels & Resorts shares are held by institutional investors. Comparatively, 87.2% of Pinnacle Entertainment shares are held by institutional investors. 0.9% of Xenia Hotels & Resorts shares are held by insiders. Comparatively, 10.3% of Pinnacle Entertainment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Xenia Hotels & Resorts and Pinnacle Entertainment, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenia Hotels & Resorts 0 4 2 0 2.33
Pinnacle Entertainment 0 6 3 0 2.33

Xenia Hotels & Resorts currently has a consensus price target of $25.00, indicating a potential upside of 2.42%. Pinnacle Entertainment has a consensus price target of $31.00, indicating a potential downside of 9.81%. Given Xenia Hotels & Resorts’ higher possible upside, equities analysts plainly believe Xenia Hotels & Resorts is more favorable than Pinnacle Entertainment.

Risk and Volatility

Xenia Hotels & Resorts has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Pinnacle Entertainment has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Xenia Hotels & Resorts and Pinnacle Entertainment’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenia Hotels & Resorts $945.28 million 2.89 $98.86 million $2.06 11.85
Pinnacle Entertainment $2.56 billion 0.79 $63.10 million $1.02 33.70

Xenia Hotels & Resorts has higher earnings, but lower revenue than Pinnacle Entertainment. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than Pinnacle Entertainment, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xenia Hotels & Resorts and Pinnacle Entertainment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenia Hotels & Resorts 10.33% 6.23% 3.40%
Pinnacle Entertainment 3.16% -24.61% 1.97%

Dividends

Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 4.5%. Pinnacle Entertainment does not pay a dividend. Xenia Hotels & Resorts pays out 53.4% of its earnings in the form of a dividend. Xenia Hotels & Resorts has increased its dividend for 2 consecutive years.

Summary

Xenia Hotels & Resorts beats Pinnacle Entertainment on 9 of the 16 factors compared between the two stocks.

Xenia Hotels & Resorts Company Profile

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 38 hotels, including 36 wholly owned hotels, comprising 10,852 rooms, across 17 states and the District of Columbia. Xenia's hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Hilton, and Loews, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, and Davidson Hotels & Resorts.

Pinnacle Entertainment Company Profile

Pinnacle Entertainment, Inc. owns, develops, and operates casinos and related hospitality and entertainment facilities in the United States. It operates through Midwest, South, and West segments. As of February 28, 2018, the company owned and operated 16 gaming entertainment businesses located in Colorado, Indiana, Iowa, Louisiana, Mississippi, Missouri, Nevada, Ohio, and Pennsylvania. It also holds interest in the racing license owner, as well as a management contract, for Retama Park Racetrack outside of San Antonio, Texas. In addition, the company owns and operates a live and televised poker tournament series under the Heartland Poker Tour name. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1938 and is headquartered in Las Vegas, Nevada.

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