Comparing Xenia Hotels & Resorts (NYSE:XHR) and CubeSmart (NYSE:CUBE)

Xenia Hotels & Resorts (NYSE:XHR) and CubeSmart (NYSE:CUBE) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Valuation & Earnings

This table compares Xenia Hotels & Resorts and CubeSmart”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xenia Hotels & Resorts	$1.08 billion	1.30	$63.09 million	$0.64	23.67
CubeSmart	$1.12 billion	7.78	$333.78 million	$1.45	26.54

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

Dividends

Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.7%. CubeSmart pays an annual dividend of $2.12 per share and has a dividend yield of 5.5%. Xenia Hotels & Resorts pays out 87.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CubeSmart pays out 146.2% 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 CubeSmart has increased its dividend for 16 consecutive years. CubeSmart is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Xenia Hotels & Resorts and CubeSmart, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xenia Hotels & Resorts	1	0	3	0	2.50
CubeSmart	0	10	6	0	2.38

Xenia Hotels & Resorts presently has a consensus price target of $14.50, suggesting a potential downside of 4.27%. CubeSmart has a consensus price target of $43.64, suggesting a potential upside of 13.42%. Given CubeSmart’s higher probable upside, analysts clearly believe CubeSmart is more favorable than Xenia Hotels & Resorts.

Risk and Volatility

Xenia Hotels & Resorts has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, CubeSmart has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xenia Hotels & Resorts	5.85%	5.13%	2.21%
CubeSmart	29.72%	11.84%	4.97%

Institutional & Insider Ownership

92.4% of Xenia Hotels & Resorts shares are owned by institutional investors. Comparatively, 97.6% of CubeSmart shares are owned by institutional investors. 3.2% of Xenia Hotels & Resorts shares are owned by insiders. Comparatively, 1.7% of CubeSmart shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CubeSmart beats Xenia Hotels & Resorts on 13 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 CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.