Head-To-Head Comparison: NETSTREIT (NYSE:NTST) versus Xenia Hotels & Resorts (NYSE:XHR)

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

Volatility and Risk

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

Analyst Ratings

This is a summary of current ratings for NETSTREIT and Xenia Hotels & Resorts, as reported by MarketBeat.com.

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

NETSTREIT currently has a consensus price target of $22.25, indicating a potential upside of 7.05%. Xenia Hotels & Resorts has a consensus price target of $17.33, indicating a potential upside of 5.72%. Given NETSTREIT’s higher probable upside, equities research analysts clearly believe NETSTREIT is more favorable than Xenia Hotels & Resorts.

Profitability

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

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

Dividends

NETSTREIT pays an annual dividend of $0.88 per share and has a dividend yield of 4.2%. Xenia Hotels & Resorts pays an annual dividend of $0.56 per share and has a dividend yield of 3.4%. 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 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 has increased its dividend for 1 consecutive years and Xenia Hotels & Resorts has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares NETSTREIT 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
NETSTREIT	$195.01 million	10.37	$6.90 million	$0.13	159.88
Xenia Hotels & Resorts	$1.08 billion	1.40	$63.09 million	$0.70	23.42

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.

Institutional and Insider Ownership

92.4% of Xenia Hotels & Resorts shares are held by institutional investors. 0.7% of NETSTREIT shares are held by insiders. Comparatively, 4.4% of Xenia Hotels & Resorts shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Xenia Hotels & Resorts beats NETSTREIT on 12 of the 17 factors compared between the two stocks.

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.

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.