Braemar Hotels & Resorts (NYSE:BHR – Get Free Report) and CTO Realty Growth (NYSE:CTO – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
Volatility and Risk
Braemar Hotels & Resorts has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
64.8% of Braemar Hotels & Resorts shares are held by institutional investors. Comparatively, 67.2% of CTO Realty Growth shares are held by institutional investors. 1.7% of Braemar Hotels & Resorts shares are held by company insiders. Comparatively, 5.0% of CTO Realty Growth shares are held by company 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Braemar Hotels & Resorts | 0 | 1 | 0 | 0 | 2.00 |
| CTO Realty Growth | 0 | 0 | 3 | 1 | 3.25 |
Braemar Hotels & Resorts currently has a consensus target price of $2.50, suggesting a potential downside of 25.15%. CTO Realty Growth has a consensus target price of $20.33, suggesting a potential upside of 7.24%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, analysts plainly believe CTO Realty Growth is more favorable than Braemar Hotels & Resorts.
Profitability
This table compares Braemar Hotels & Resorts and CTO Realty Growth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Braemar Hotels & Resorts | -4.95% | -12.33% | -1.64% |
| CTO Realty Growth | 14.52% | 3.55% | 1.63% |
Dividends
Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 6.0%. CTO Realty Growth pays an annual dividend of $1.52 per share and has a dividend yield of 8.0%. Braemar Hotels & Resorts pays out -17.9% of its earnings in the form of a dividend. CTO Realty Growth pays out 276.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CTO Realty Growth has raised its dividend for 4 consecutive years. CTO Realty Growth is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Braemar Hotels & Resorts and CTO Realty Growth”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Braemar Hotels & Resorts | $744.00 million | 0.30 | -$27.02 million | ($1.12) | -2.98 |
| CTO Realty Growth | $115.33 million | 3.78 | $5.53 million | $0.55 | 34.53 |
CTO Realty Growth has lower revenue, but higher earnings than Braemar Hotels & Resorts. Braemar Hotels & Resorts is trading at a lower price-to-earnings ratio than CTO Realty Growth, indicating that it is currently the more affordable of the two stocks.
Summary
CTO Realty Growth beats Braemar Hotels & Resorts on 15 of the 18 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 CTO Realty Growth
CTO Realty Growth, Inc. is a publicly traded real estate investment trust that owns and operates a portfolio of high-quality, retail-based properties located primarily in higher growth markets in the United States. CTO also externally manages and owns a meaningful interest in Alpine Income Property Trust, Inc. (NYSE: PINE), a publicly traded net lease REIT.
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