Braemar Hotels & Resorts (NYSE:BHR) vs. STAG Industrial (NYSE:STAG) Financial Comparison

Braemar Hotels & Resorts (NYSE:BHR) and STAG Industrial (NYSE:STAG) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Institutional and Insider Ownership

64.8% of Braemar Hotels & Resorts shares are owned by institutional investors. Comparatively, 88.7% of STAG Industrial shares are owned by institutional investors. 1.7% of Braemar Hotels & Resorts shares are owned by insiders. Comparatively, 1.1% of STAG Industrial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Braemar Hotels & Resorts and STAG Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braemar Hotels & Resorts	-3.65%	-7.91%	-1.18%
STAG Industrial	27.22%	5.58%	3.11%

Volatility and Risk

Braemar Hotels & Resorts has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500. Comparatively, STAG Industrial has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Dividends

Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 10.0%. STAG Industrial pays an annual dividend of $1.48 per share and has a dividend yield of 3.9%. Braemar Hotels & Resorts pays out -17.9% of its earnings in the form of a dividend. STAG Industrial pays out 137.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. STAG Industrial has raised its dividend for 6 consecutive years. Braemar Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Braemar Hotels & Resorts and STAG Industrial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braemar Hotels & Resorts	$739.34 million	0.18	-$27.02 million	($1.12)	-1.79
STAG Industrial	$707.84 million	9.79	$192.85 million	$1.08	35.27

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

Analyst Ratings

This is a summary of recent ratings and target prices for Braemar Hotels & Resorts and STAG Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braemar Hotels & Resorts	0	2	0	0	2.00
STAG Industrial	0	5	1	0	2.17

Braemar Hotels & Resorts presently has a consensus price target of $2.50, indicating a potential upside of 24.38%. STAG Industrial has a consensus price target of $38.71, indicating a potential upside of 1.63%. Given Braemar Hotels & Resorts’ higher probable upside, equities analysts clearly believe Braemar Hotels & Resorts is more favorable than STAG Industrial.

Summary

STAG Industrial beats Braemar Hotels & Resorts on 11 of the 17 factors compared between the two stocks.

About Braemar Hotels & Resorts

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

About STAG Industrial

We are a REIT focused on the acquisition, ownership, and operation of industrial properties throughout the United States. Our platform is designed to (i) identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial real estate markets, industries, and tenants through the principled application of our proprietary risk assessment model, (ii) provide growth through sophisticated industrial operation and an attractive opportunity set, and (iii) capitalize our business appropriately given the characteristics of our assets. We are organized and conduct our operations to maintain our qualification as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the Code), and generally are not subject to federal income tax to the extent we currently distribute our income to our stockholders and maintain our qualification as a REIT. We remain subject to state and local taxes on our income and property and to U.S. federal income and excise taxes on our undistributed income. As of December 31, 2023, we owned 569 buildings in 41 states with approximately 112.3 million rentable square feet, consisting of 493 warehouse/distribution buildings, 70 light manufacturing buildings, one flex/office building, and five Value Add Portfolio buildings. In addition, as of December 31, 2023, we had six development projects (which are not included in the building count noted above). While the majority of our portfolio consists of single-tenant properties, we also own a growing number of multi-tenant properties. As of December 31, 2023, our buildings were approximately 98.2% leased, with no single tenant accounting for more than approximately 2.9% of our total annualized base rental revenue and no single industry accounting for more than approximately 11.0% of our total annualized base rental revenue. We intend to maintain a diversified mix of tenants to limit our exposure to any single tenant or industry. As of December 31, 2023, our Operating Portfolio was approximately 98.4% leased. SL Rent Change on new and renewal leases together grew approximately 44.0% and 24.3% during the years ended December 31, 2023 and 2022, respectively, and our Cash Rent Change on new and renewal leases together grew approximately 31.0% and 14.3% during the years ended December 31, 2023 and 2022, respectively. We have fully integrated acquisition, leasing and operations platforms led by a senior management team with decades of industrial real estate experience. Our mission is to deliver attractive long-term stockholder returns in all market environments by growing cash flow through disciplined investment in high-quality real estate while maintaining a strong balance sheet.