GreenTree Hospitality Group (NYSE:GHG) and Xenia Hotels & Resorts (NYSE:XHR) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.
Analyst Recommendations
This is a summary of recent ratings for GreenTree Hospitality Group and Xenia Hotels & Resorts, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| GreenTree Hospitality Group | 0 | 0 | 1 | 0 | 3.00 |
| Xenia Hotels & Resorts | 1 | 2 | 4 | 0 | 2.43 |
GreenTree Hospitality Group presently has a consensus target price of $17.10, suggesting a potential upside of 29.64%. Xenia Hotels & Resorts has a consensus target price of $16.5714, suggesting a potential downside of 9.25%. Given GreenTree Hospitality Group's stronger consensus rating and higher possible upside, analysts plainly believe GreenTree Hospitality Group is more favorable than Xenia Hotels & Resorts.
Volatility & Risk
GreenTree Hospitality Group has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.
Insider and Institutional Ownership
79.7% of Xenia Hotels & Resorts shares are owned by institutional investors. 1.9% of Xenia Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares GreenTree Hospitality Group and Xenia Hotels & Resorts' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| GreenTree Hospitality Group | 27.16% | 17.60% | 9.56% |
| Xenia Hotels & Resorts | -13.99% | -6.41% | -3.29% |
Earnings & Valuation
This table compares GreenTree Hospitality Group and Xenia Hotels & Resorts' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| GreenTree Hospitality Group | $156.83 million | 8.59 | $63.59 million | $0.64 | 20.61 |
| Xenia Hotels & Resorts | $1.15 billion | 1.79 | $55.40 million | $2.19 | 8.27 |
GreenTree Hospitality Group has higher earnings, but lower revenue than Xenia Hotels & Resorts. Xenia Hotels & Resorts is trading at a lower price-to-earnings ratio than GreenTree Hospitality Group, indicating that it is currently the more affordable of the two stocks.
Summary
GreenTree Hospitality Group beats Xenia Hotels & Resorts on 8 of the 14 factors compared between the two stocks.
