Braemar Hotels & Resorts (NYSE:BHR) vs. SITE Centers (NYSE:SITC) Critical Comparison

Braemar Hotels & Resorts (NYSE:BHR) and SITE Centers (NYSE:SITC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk & Volatility

Braemar Hotels & Resorts has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, SITE Centers has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500.

Profitability

This table compares Braemar Hotels & Resorts and SITE Centers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Braemar Hotels & Resorts	-3.65%	-8.43%	-1.20%
SITE Centers	43.36%	11.83%	5.66%

Valuation & Earnings

This table compares Braemar Hotels & Resorts and SITE Centers’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Braemar Hotels & Resorts	$739.34 million	0.23	-$27.02 million	($1.12)	-2.28
SITE Centers	$539.46 million	5.63	$265.70 million	$1.02	14.22

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

Analyst Recommendations

This is a breakdown of current recommendations for Braemar Hotels & Resorts and SITE Centers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braemar Hotels & Resorts	0	2	0	0	2.00
SITE Centers	0	2	2	0	2.50

Braemar Hotels & Resorts currently has a consensus price target of $2.50, indicating a potential downside of 1.96%. SITE Centers has a consensus price target of $14.38, indicating a potential downside of 0.86%. Given SITE Centers’ stronger consensus rating and higher probable upside, analysts clearly believe SITE Centers is more favorable than Braemar Hotels & Resorts.

Institutional and Insider Ownership

64.8% of Braemar Hotels & Resorts shares are owned by institutional investors. Comparatively, 88.7% of SITE Centers shares are owned by institutional investors. 1.7% of Braemar Hotels & Resorts shares are owned by insiders. Comparatively, 10.1% of SITE Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 7.8%. SITE Centers pays an annual dividend of $0.52 per share and has a dividend yield of 3.6%. Braemar Hotels & Resorts pays out -17.9% of its earnings in the form of a dividend. SITE Centers pays out 51.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Braemar Hotels & Resorts is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

SITE Centers beats Braemar Hotels & Resorts on 12 of the 16 factors compared between the two stocks.

About Braemar Hotels & Resorts

Braemar Hotels & Resorts is a conservatively capitalized REIT that invests primarily in high RevPAR, full-service luxury hotels and resorts. We are listed on the New York Stock Exchange under the symbol BHR and are externally-advised by Ashford (NYSE American: AINC).

About SITE Centers

SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.