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

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

Volatility and Risk

COPT Defense Properties has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Profitability

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

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

Dividends

COPT Defense Properties pays an annual dividend of $1.22 per share and has a dividend yield of 3.8%. Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. 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 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. Xenia Hotels & Resorts has increased its dividend for 3 consecutive years.

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for COPT Defense Properties and Xenia Hotels & Resorts, as provided by MarketBeat.

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

COPT Defense Properties presently has a consensus price target of $33.88, suggesting a potential upside of 5.23%. Xenia Hotels & Resorts has a consensus price target of $14.00, suggesting a potential downside of 7.83%. Given COPT Defense Properties’ stronger consensus rating and higher probable upside, equities research analysts clearly believe COPT Defense Properties is more favorable than Xenia Hotels & Resorts.

Valuation & Earnings

This table compares COPT Defense Properties and Xenia Hotels & Resorts”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COPT Defense Properties	$763.92 million	4.77	$152.32 million	$1.35	23.84
Xenia Hotels & Resorts	$1.08 billion	1.30	$63.09 million	$0.64	23.73

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

Summary

COPT Defense Properties beats Xenia Hotels & Resorts on 11 of the 17 factors compared between the two stocks.

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.

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.