Critical Contrast: Xenia Hotels & Resorts (NYSE:XHR) versus NETSTREIT (NYSE:NTST)

Xenia Hotels & Resorts (NYSE:XHR) and NETSTREIT (NYSE:NTST) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.3%. NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.3%. Xenia Hotels & Resorts pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NETSTREIT pays out 676.9% 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 and NETSTREIT has increased its dividend for 1 consecutive years.

Insider and Institutional Ownership

92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. 4.4% of Xenia Hotels & Resorts shares are owned by company insiders. Comparatively, 0.7% of NETSTREIT shares are owned by company 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.

Earnings and Valuation

This table compares Xenia Hotels & Resorts and NETSTREIT”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenia Hotels & Resorts	$1.08 billion	1.44	$63.09 million	$0.70	24.07
NETSTREIT	$195.01 million	10.19	$6.90 million	$0.13	157.13

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

Risk and Volatility

Xenia Hotels & Resorts has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, NETSTREIT has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Xenia Hotels & Resorts and NETSTREIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	6.20%	5.53%	2.38%
NETSTREIT	5.29%	0.78%	0.43%

Analyst Recommendations

This is a summary of recent recommendations for Xenia Hotels & Resorts and NETSTREIT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	0	0	3	0	3.00
NETSTREIT	0	3	12	0	2.80

Xenia Hotels & Resorts presently has a consensus price target of $17.33, suggesting a potential upside of 2.87%. NETSTREIT has a consensus price target of $22.25, suggesting a potential upside of 8.92%. Given NETSTREIT’s higher probable upside, analysts plainly believe NETSTREIT is more favorable than Xenia Hotels & Resorts.

Summary

Xenia Hotels & Resorts beats NETSTREIT on 12 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 NETSTREIT

NETSTREIT Corp. is an internally managed real estate investment trust (REIT) based in Dallas, Texas that specializes in acquiring single-tenant net lease retail properties nationwide. The growing portfolio consists of high-quality properties leased to e-commerce resistant tenants with healthy balance sheets. Led by a management team of seasoned commercial real estate executives, NETSTREIT’s strategy is to create the highest quality net lease retail portfolio in the country with the goal of generating consistent cash flows and dividends for its investors.