Head to Head Survey: Xenia Hotels & Resorts (XHR) vs. Tropicana Entertainment (TPCA)

Tropicana Entertainment (OTCMKTS:TPCA) and Xenia Hotels & Resorts (NYSE:XHR) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Risk and Volatility

Tropicana Entertainment has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Xenia Hotels & Resorts has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Insider & Institutional Ownership

76.9% of Xenia Hotels & Resorts shares are owned by institutional investors. 83.9% of Tropicana Entertainment shares are owned by company insiders. Comparatively, 0.9% of Xenia Hotels & Resorts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Tropicana Entertainment and Xenia Hotels & Resorts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tropicana Entertainment $898.19 million 1.96 $49.84 million N/A N/A
Xenia Hotels & Resorts $945.28 million 2.37 $98.86 million $2.06 9.67

Xenia Hotels & Resorts has higher revenue and earnings than Tropicana Entertainment.

Profitability

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

Net Margins Return on Equity Return on Assets
Tropicana Entertainment 5.77% 5.62% 4.35%
Xenia Hotels & Resorts 9.93% 5.96% 3.31%

Dividends

Xenia Hotels & Resorts pays an annual dividend of $1.10 per share and has a dividend yield of 5.5%. Tropicana Entertainment does not pay a dividend. Xenia Hotels & Resorts pays out 53.4% of its earnings in the form of a dividend. Xenia Hotels & Resorts has raised its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tropicana Entertainment and Xenia Hotels & Resorts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tropicana Entertainment 0 0 0 0 N/A
Xenia Hotels & Resorts 0 3 2 0 2.40

Xenia Hotels & Resorts has a consensus price target of $25.60, suggesting a potential upside of 28.45%. Given Xenia Hotels & Resorts’ higher probable upside, analysts plainly believe Xenia Hotels & Resorts is more favorable than Tropicana Entertainment.

Summary

Xenia Hotels & Resorts beats Tropicana Entertainment on 11 of the 14 factors compared between the two stocks.

Tropicana Entertainment Company Profile

Tropicana Entertainment Inc. owns and operates casino and entertainment properties in the United States. It operates two casinos in Nevada; and one casino in each of Indiana, Louisiana, Mississippi, Missouri, and New Jersey, as well as a hotel, timeshare, and casino resort property located on the island of Aruba. As of December 31, 2017, the company properties included approximately 399,000 square feet of gaming space with approximately 8,000 slot machines, 270 table games and 5,800 hotel rooms. The company is headquartered in Las Vegas, Nevada. Tropicana Entertainment Inc. is a subsidiary of Icahn Enterprises Holdings L.P.

Xenia Hotels & Resorts Company Profile

Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service and lifestyle hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in the United States. The Company owns 40 hotels comprising 11,239 rooms, across 17 states and the District of Columbia. Xenia's hotels are primarily in the luxury and upper upscale segments, and operated and/or licensed by industry leaders such as Marriott, Hyatt, Kimpton, Fairmont, Hilton, and Loews, as well as leading independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, and Davidson Hotels & Resorts.

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