Critical Review: Braemar Hotels & Resorts (NYSE:BHR) & CV (OTCMKTS:CVHL)

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

Risk and Volatility

Braemar Hotels & Resorts has a beta of 2.05, indicating that its stock price is 105% more volatile than the S&P 500. Comparatively, CV has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Valuation & Earnings

This table compares Braemar Hotels & Resorts and CV”s 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	($0.77)	-3.37
CV	$23.58 million	0.05	-$15.96 million	N/A	N/A

CV has lower revenue, but higher earnings than Braemar Hotels & Resorts.

Institutional and Insider Ownership

64.8% of Braemar Hotels & Resorts shares are owned by institutional investors. 1.8% of Braemar Hotels & Resorts shares are owned by company insiders. Comparatively, 7.6% of CV shares are owned 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Braemar Hotels & Resorts	-0.30%	-0.78%	-0.10%
CV	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Braemar Hotels & Resorts and CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Braemar Hotels & Resorts	0	1	0	0	2.00
CV	0	0	0	0	0.00

Braemar Hotels & Resorts presently has a consensus target price of $2.50, indicating a potential downside of 3.66%. Given Braemar Hotels & Resorts’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Braemar Hotels & Resorts is more favorable than CV.

Summary

Braemar Hotels & Resorts beats CV on 6 of the 11 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 CV

CV Holdings, Inc. operates as a specialty finance company. It owns finance platforms across various businesses, including small-ticket equipment financing and commercial real estate bridge lending. CV Holdings, Inc. was incorporated in 2005 and is based in Newport Beach, California.