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

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

Risk and Volatility

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

Valuation & Earnings

This table compares CV and Braemar Hotels & Resorts”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CV	$23.58 million	0.03	-$15.96 million	N/A	N/A
Braemar Hotels & Resorts	$739.34 million	0.24	-$27.02 million	($0.77)	-3.44

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

Insider and Institutional Ownership

64.8% of Braemar Hotels & Resorts shares are held by institutional investors. 7.6% of CV shares are held by company insiders. Comparatively, 1.8% of Braemar Hotels & Resorts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for CV and Braemar Hotels & Resorts, as provided by MarketBeat.

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

Braemar Hotels & Resorts has a consensus target price of $2.50, indicating a potential downside of 5.48%. Given Braemar Hotels & Resorts’ stronger consensus rating and higher probable upside, analysts plainly believe Braemar Hotels & Resorts is more favorable than CV.

Profitability

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

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

Summary

Braemar Hotels & Resorts beats CV on 6 of the 11 factors compared between the two stocks.

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.

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).