DiamondRock Hospitality Company (DRH) vs Xenia Hotels & Resorts, Inc. (XHR)

DiamondRock Hospitality Company and Xenia Hotels & Resorts, Inc. are both Reit Hotel & Motel companies. DiamondRock Hospitality Company is the larger, with a market value of $2.6B against $1.7B — 1.5× the size. Xenia Hotels & Resorts, Inc. has negative trailing earnings, so its P/E is not meaningful; DiamondRock Hospitality Company trades at 17.1×. Xenia Hotels & Resorts, Inc. grew revenue faster over the last twelve months: 1.65% against 1.03%. DiamondRock Hospitality Company has the higher net margin (13.1% vs −0.66%) and the higher return on invested capital (4.62% vs 1.96%). Both pay a dividend; Xenia Hotels & Resorts, Inc. yields more (3.04% vs 1.40%). Across the 21 metrics below, DiamondRock Hospitality Company leads on 13 and Xenia Hotels & Resorts, Inc. on 8.

Valuation

Metric DRH XHR Reit Hotel & Motel median
P/E 17.14 n/m 25.03
P/S 2.26 1.53 1.53
P/B 1.68 1.44 1.05
Price to free cash flow 13.27 16.26 7.25
EV/EBITDA 11.74 13.77 11.74
EV/Sales 3.10 2.60 2.64
Earnings yield 5.84% (0.39%) (0.39%)
Free cash flow yield 7.53% 6.15% 7.53%

Profitability

Metric DRH XHR Reit Hotel & Motel median
Gross margin 37.37% 59.81% 37.37%
Operating margin 16.16% 6.69% 9.53%
Net margin 13.09% (0.66%) (0.66%)
Free cash flow margin 17.01% 10.57% 17.01%
Return on equity 9.56% (0.60%) 0.53%
Return on assets 4.86% (0.26%) (0.26%)
Return on invested capital 4.62% 1.96% 2.16%

Growth

Metric DRH XHR Reit Hotel & Motel median
Revenue growth (TTM) 1.03% 1.65% 1.17%
EPS growth (last fiscal year) 144.44% 326.67% —
Revenue growth, 5-year CAGR 30.20% 23.87% 24.43%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRH XHR Reit Hotel & Motel median
Debt to equity 0.72 1.17 0.83
Current ratio 1.87 2.47 1.34
Net debt to EBITDA 3.59 4.94 5.14

Dividend

Metric DRH XHR Reit Hotel & Motel median
Dividend yield 1.40% 3.04% 3.10%
Payout ratio 0.30 0.83 0.48

Size

Metric DRH XHR Reit Hotel & Motel median
Market cap 2.55b 1.65b 1.70b

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