Head-To-Head Contrast: Omega Healthcare Investors (NYSE:OHI) & Xenia Hotels & Resorts (NYSE:XHR)

Xenia Hotels & Resorts (NYSE:XHR) and Omega Healthcare Investors (NYSE:OHI) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.

Risk and Volatility

Xenia Hotels & Resorts has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Omega Healthcare Investors has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Xenia Hotels & Resorts and Omega Healthcare Investors’ 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%
Omega Healthcare Investors	46.83%	10.72%	5.29%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Xenia Hotels & Resorts and Omega Healthcare Investors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	1	2	3	0	2.33
Omega Healthcare Investors	0	7	7	0	2.50

Xenia Hotels & Resorts presently has a consensus target price of $14.00, indicating a potential downside of 8.29%. Omega Healthcare Investors has a consensus target price of $47.09, indicating a potential upside of 8.75%. Given Omega Healthcare Investors’ stronger consensus rating and higher possible upside, analysts plainly believe Omega Healthcare Investors is more favorable than Xenia Hotels & Resorts.

Valuation & Earnings

This table compares Xenia Hotels & Resorts and Omega Healthcare Investors”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	$1.04 billion	1.39	$16.14 million	$0.56	27.26
Omega Healthcare Investors	$1.05 billion	12.17	$406.33 million	$1.79	24.19

Omega Healthcare Investors has higher revenue and earnings than Xenia Hotels & Resorts. Omega Healthcare Investors 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 owned by institutional investors. Comparatively, 65.3% of Omega Healthcare Investors shares are owned by institutional investors. 3.2% of Xenia Hotels & Resorts shares are owned by insiders. Comparatively, 1.5% of Omega Healthcare Investors shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.2%. Xenia Hotels & Resorts pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Omega Healthcare Investors pays out 149.7% 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 raised its dividend for 3 consecutive years.

Summary

Omega Healthcare Investors beats Xenia Hotels & Resorts on 11 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 Omega Healthcare Investors

Omega Healthcare Investors, Inc. engages in the provision of financing and capital to the long-term healthcare industry with a particular focus on skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitation and acute care facilities, and medical office buildings. The company was founded on March 31, 1992 and is headquartered in Hunt Valley, MD.