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

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

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 3.6%. 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 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. COPT Defense Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

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	5.24%	4.50%	1.97%

Institutional & Insider Ownership

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

Volatility and Risk

COPT Defense Properties has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Ratings

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

	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 target price of $33.63, suggesting a potential upside of 4.26%. Xenia Hotels & Resorts has a consensus target price of $14.00, suggesting a potential downside of 10.85%. Given COPT Defense Properties’ stronger consensus rating and higher possible upside, equities research analysts plainly believe COPT Defense Properties is more favorable than Xenia Hotels & Resorts.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
COPT Defense Properties	$763.92 million	4.78	$152.32 million	$1.35	23.89
Xenia Hotels & Resorts	$1.04 billion	1.43	$16.14 million	$0.56	28.04

COPT Defense Properties has higher earnings, but lower revenue than Xenia Hotels & Resorts. COPT Defense Properties 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

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.