Head to Head Review: Annaly Commercial Real Estate Group (CXS) & Equity One (EQY)

Equity One (NYSE: EQY) and Annaly Commercial Real Estate Group (NYSE:CXS) are both commercial reits – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Institutional and Insider Ownership

64.0% of Equity One shares are held by institutional investors. 35.9% of Equity One shares are held 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 Equity One and Annaly Commercial Real Estate Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Equity One 18.64% 3.82% 2.05%
Annaly Commercial Real Estate Group N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Equity One and Annaly Commercial Real Estate Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity One 0 0 0 0 N/A
Annaly Commercial Real Estate Group 0 0 0 0 N/A

Dividends

Equity One pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Annaly Commercial Real Estate Group does not pay a dividend. Equity One pays out 146.9% 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 & Earnings

This table compares Equity One and Annaly Commercial Real Estate Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity One N/A N/A N/A $0.49 62.96
Annaly Commercial Real Estate Group N/A N/A N/A $0.83 N/A

Annaly Commercial Real Estate Group is trading at a lower price-to-earnings ratio than Equity One, indicating that it is currently the more affordable of the two stocks.

Summary

Equity One beats Annaly Commercial Real Estate Group on 6 of the 8 factors compared between the two stocks.

Equity One Company Profile

Equity One, Inc. is a real estate investment trust (REIT). The Company owns, manages, acquires, develops and redevelops shopping centers and retail properties located in supply constrained suburban and urban communities. As of December 31, 2016, the Company’s portfolio consisted of 122 properties, including 101 retail properties and five non-retail properties totaling approximately 12.8 million square feet of gross leasable area (GLA), 10 development or redevelopment properties with approximately 2.3 million square feet of GLA, and six land parcels. Its retail occupancy excluding developments and redevelopments was 95.8% and included national, regional and local tenants as of December 31, 2016. In addition, the Company had joint venture interests in six retail properties and two office buildings totaling approximately 1.4 million square feet of GLA as of December 31, 2016.

Annaly Commercial Real Estate Group Company Profile

CreXus Investment Corp. is a real estate investment trust (REIT). The Company is a commercial real estate company that acquires, manages, and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial real property, commercial mortgage-backed securities (CMBS), other commercial real estate-related assets and Agency residential mortgage-backed securities. The Company also engages in long-term sale-leaseback and build-to-suit transactions with companies in the United States. The Company is managed by Fixed Income Discount Advisory Company (FIDAC). FIDAC is a wholly owned subsidiary of Annaly Capital Management, Inc. (Annaly).

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