Critical Review: Dynex Capital (DX) versus Ryman Hospitality Properties (RHP)

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Ryman Hospitality Properties (NYSE:RHP) and Dynex Capital (NYSE:DX) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Dividends

Ryman Hospitality Properties pays an annual dividend of $3.40 per share and has a dividend yield of 4.3%. Dynex Capital pays an annual dividend of $0.24 per share and has a dividend yield of 3.9%. Ryman Hospitality Properties pays out 61.2% of its earnings in the form of a dividend. Dynex Capital pays out 32.9% 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. Ryman Hospitality Properties has increased its dividend for 5 consecutive years. Ryman Hospitality Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Ryman Hospitality Properties and Dynex Capital’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ryman Hospitality Properties $1.18 billion 3.44 $176.10 million $5.56 14.28
Dynex Capital $94.50 million 4.06 $33.89 million $0.73 8.37

Ryman Hospitality Properties has higher revenue and earnings than Dynex Capital. Dynex Capital is trading at a lower price-to-earnings ratio than Ryman Hospitality Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Ryman Hospitality Properties and Dynex Capital, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ryman Hospitality Properties 0 1 5 0 2.83
Dynex Capital 0 1 0 0 2.00

Ryman Hospitality Properties presently has a consensus target price of $90.50, indicating a potential upside of 13.98%. Dynex Capital has a consensus target price of $7.00, indicating a potential upside of 14.57%. Given Dynex Capital’s higher probable upside, analysts plainly believe Dynex Capital is more favorable than Ryman Hospitality Properties.

Profitability

This table compares Ryman Hospitality Properties and Dynex Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ryman Hospitality Properties 14.11% 51.08% 7.26%
Dynex Capital 105.23% 13.92% 1.73%

Institutional and Insider Ownership

85.4% of Ryman Hospitality Properties shares are held by institutional investors. Comparatively, 50.7% of Dynex Capital shares are held by institutional investors. 3.2% of Ryman Hospitality Properties shares are held by company insiders. Comparatively, 4.0% of Dynex Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Ryman Hospitality Properties has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Dynex Capital has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Summary

Ryman Hospitality Properties beats Dynex Capital on 12 of the 17 factors compared between the two stocks.

Ryman Hospitality Properties Company Profile

Ryman Hospitality Properties, Inc. (NYSE:RHP) is a REIT for federal income tax purposes, specializing in group-oriented, destination hotel assets in urban and resort markets. The Company's owned assets include a network of four upscale, meetings-focused resorts totaling 8,114 rooms that are managed by lodging operator Marriott International, Inc. under the Gaylord Hotels brand. Other owned assets managed by Marriott International, Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the General Jackson Showboat, The Inn at Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at National Harbor, a 192-room hotel near Gaylord National. The Company also owns and operates media and entertainment assets, including the Grand Ole Opry (opry.com), the legendary weekly showcase of country music's finest performers for over 90 years; the Ryman Auditorium, the storied former home of the Grand Ole Opry located in downtown Nashville; 650 AM WSM, the Opry's radio home; and Ole Red, a country lifestyle and entertainment brand.

Dynex Capital Company Profile

Dynex Capital, Inc., a mortgage real estate investment trust, invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest-only securities. Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS have no such guaranty of payment. The company has qualified as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Dynex Capital, Inc. was founded in 1987 and is based in Glen Allen, Virginia.

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