Analyzing Clipper Realty (CLPR) and BRT Realty Trust (BRT)

Clipper Realty (NYSE: CLPR) and BRT Realty Trust (NYSE:BRT) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 3.8%. BRT Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 6.5%. Clipper Realty pays out -190.0% of its earnings in the form of a dividend. BRT Realty Trust pays out 90.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares Clipper Realty and BRT Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clipper Realty $93.00 million 1.92 -$3.73 million ($0.20) -50.20
BRT Realty Trust $94.26 million 1.66 $31.28 million $0.80 13.93

BRT Realty Trust has higher revenue and earnings than Clipper Realty. Clipper Realty is trading at a lower price-to-earnings ratio than BRT Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Clipper Realty and BRT Realty Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 4 0 3.00
BRT Realty Trust 0 1 2 0 2.67

Clipper Realty presently has a consensus target price of $15.67, suggesting a potential upside of 56.04%. BRT Realty Trust has a consensus target price of $11.13, suggesting a potential downside of 0.13%. Given Clipper Realty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Clipper Realty is more favorable than BRT Realty Trust.

Institutional and Insider Ownership

57.1% of Clipper Realty shares are owned by institutional investors. Comparatively, 22.1% of BRT Realty Trust shares are owned by institutional investors. 41.9% of BRT Realty Trust shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Clipper Realty and BRT Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clipper Realty -2.66% -0.74% -0.13%
BRT Realty Trust 10.81% 5.07% 1.24%

Summary

BRT Realty Trust beats Clipper Realty on 8 of the 15 factors compared between the two stocks.

Clipper Realty Company Profile

Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.

BRT Realty Trust Company Profile

BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.

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