Financial Analysis: Xenia Hotels & Resorts (NYSE:XHR) vs. Omega Healthcare Investors (NYSE:OHI)

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

Profitability

This table compares Omega Healthcare Investors and Xenia Hotels & Resorts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omega Healthcare Investors	46.83%	10.72%	5.29%
Xenia Hotels & Resorts	5.24%	4.50%	1.97%

Volatility & Risk

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

Insider & Institutional Ownership

65.3% of Omega Healthcare Investors shares are held by institutional investors. Comparatively, 92.4% of Xenia Hotels & Resorts shares are held by institutional investors. 1.5% of Omega Healthcare Investors shares are held by insiders. Comparatively, 3.2% of Xenia Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Omega Healthcare Investors pays an annual dividend of $2.68 per share and has a dividend yield of 6.2%. Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.9%. 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 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. Xenia Hotels & Resorts has increased its dividend for 3 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Omega Healthcare Investors and Xenia Hotels & Resorts, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Healthcare Investors	0	7	6	1	2.57
Xenia Hotels & Resorts	1	2	3	0	2.33

Omega Healthcare Investors currently has a consensus price target of $47.09, suggesting a potential upside of 8.99%. Xenia Hotels & Resorts has a consensus price target of $14.00, suggesting a potential downside of 3.64%. Given Omega Healthcare Investors’ stronger consensus rating and higher probable upside, analysts plainly believe Omega Healthcare Investors is more favorable than Xenia Hotels & Resorts.

Valuation & Earnings

This table compares Omega Healthcare Investors and Xenia Hotels & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Healthcare Investors	$1.05 billion	12.14	$406.33 million	$1.79	24.14
Xenia Hotels & Resorts	$1.04 billion	1.33	$16.14 million	$0.56	25.94

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.

Summary

Omega Healthcare Investors beats Xenia Hotels & Resorts on 12 of the 18 factors compared between the two stocks.

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.

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.