BRAEMAR HOTELS & RESORTS (NYSE:BHR) & Orion Office REIT (NYSE:ONL) Head-To-Head Contrast

BRAEMAR HOTELS & RESORTS (NYSE:BHR) and Orion Office REIT (NYSE:ONL) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for BRAEMAR HOTELS & RESORTS and Orion Office REIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BRAEMAR HOTELS & RESORTS	1	1	0	0	1.50
Orion Office REIT	1	1	1	0	2.00

Orion Office REIT has a consensus target price of $3.50, suggesting a potential upside of 16.86%. Given Orion Office REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Orion Office REIT is more favorable than BRAEMAR HOTELS & RESORTS.

Profitability

This table compares BRAEMAR HOTELS & RESORTS and Orion Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BRAEMAR HOTELS & RESORTS	-2.24%	-8.68%	-0.80%
Orion Office REIT	-98.36%	-21.88%	-11.79%

Risk and Volatility

BRAEMAR HOTELS & RESORTS has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.57, meaning that its share price is 57% 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 7.8%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 2.7%. BRAEMAR HOTELS & RESORTS pays out -20.8% of its earnings in the form of a dividend. Orion Office REIT pays out -3.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BRAEMAR HOTELS & RESORTS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

64.8% of BRAEMAR HOTELS & RESORTS shares are held by institutional investors. Comparatively, 79.9% of Orion Office REIT shares are held by institutional investors. 8.2% of BRAEMAR HOTELS & RESORTS shares are held by company insiders. Comparatively, 1.6% of Orion Office REIT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares BRAEMAR HOTELS & RESORTS and Orion Office REIT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BRAEMAR HOTELS & RESORTS	$704.02 million	0.25	-$22.32 million	($0.96)	-2.67
Orion Office REIT	$145.92 million	1.17	-$139.31 million	($2.56)	-1.17

BRAEMAR HOTELS & RESORTS has higher revenue and earnings than Orion Office REIT. BRAEMAR HOTELS & RESORTS is trading at a lower price-to-earnings ratio than Orion Office REIT, indicating that it is currently the more affordable of the two stocks.

Summary

BRAEMAR HOTELS & RESORTS beats Orion Office REIT on 9 of the 16 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 Orion Office REIT

Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.