Head-To-Head Analysis: CV (OTCMKTS:CVHL) and RLJ Lodging Trust (NYSE:RLJ)

CV (OTCMKTS:CVHL) and RLJ Lodging Trust (NYSE:RLJ) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares CV and RLJ Lodging Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CV	N/A	N/A	N/A
RLJ Lodging Trust	5.19%	3.58%	1.44%

Institutional & Insider Ownership

92.3% of RLJ Lodging Trust shares are held by institutional investors. 7.6% of CV shares are held by company insiders. Comparatively, 2.6% of RLJ Lodging Trust 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 & Risk

CV has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500. Comparatively, RLJ Lodging Trust has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500.

Earnings and Valuation

This table compares CV and RLJ Lodging Trust”s gross revenue, earnings per share 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
RLJ Lodging Trust	$1.37 billion	0.78	$76.40 million	$0.27	26.04

RLJ Lodging Trust has higher revenue and earnings than CV.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CV and RLJ Lodging Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CV	0	0	0	0	0.00
RLJ Lodging Trust	2	3	3	0	2.13

RLJ Lodging Trust has a consensus target price of $10.82, suggesting a potential upside of 53.93%. Given RLJ Lodging Trust’s stronger consensus rating and higher probable upside, analysts clearly believe RLJ Lodging Trust is more favorable than CV.

Summary

RLJ Lodging Trust beats CV on 11 of the 12 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 RLJ Lodging Trust

RLJ Lodging Trust is a self-advised, publicly traded real estate investment trust that owns primarily premium-branded, high-margin, focused-service and compact full-service hotels. The Company's portfolio currently consists of 96 hotels with approximately 21,200 rooms, located in 23 states and the District of Columbia and an ownership interest in one unconsolidated hotel with 171 rooms.