Head-To-Head Analysis: Braemar Hotels & Resorts (NYSE:BHR) vs. CTO Realty Growth (NYSE:CTO)

Braemar Hotels & Resorts (NYSE:BHR) and CTO Realty Growth (NYSE:CTO) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Braemar Hotels & Resorts has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, CTO Realty Growth has a beta of 0.76, suggesting 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Braemar Hotels & Resorts and CTO Realty Growth, as provided by MarketBeat.com.

	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 23.78%. CTO Realty Growth has a consensus target price of $20.33, suggesting a potential upside of 7.07%. Given CTO Realty Growth’s stronger consensus rating and higher probable upside, analysts clearly believe CTO Realty Growth is more favorable than Braemar Hotels & Resorts.

Dividends

Braemar Hotels & Resorts pays an annual dividend of $0.20 per share and has a dividend yield of 6.1%. 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 and 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	0.29	-$27.02 million	($1.12)	-2.93
CTO Realty Growth	$109.12 million	4.02	$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.

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%

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.