Reviewing NRF Holdco (NRF) & Urstadt Biddle Properties (UBA)

NRF Holdco (NYSE: NRF) and Urstadt Biddle Properties (NYSE:UBA) are both financials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Risk and Volatility

NRF Holdco has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Dividends

NRF Holdco pays an annual dividend of $1.60 per share and has a dividend yield of 9.9%. Urstadt Biddle Properties pays an annual dividend of $1.08 per share and has a dividend yield of 5.7%. NRF Holdco pays out -88.9% of its earnings in the form of a dividend. Urstadt Biddle Properties pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties has raised its dividend for 18 consecutive years. NRF Holdco is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares NRF Holdco and Urstadt Biddle Properties’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NRF Holdco N/A N/A N/A ($1.80) -8.96
Urstadt Biddle Properties $123.56 million 5.94 $52.93 million $0.90 21.10

Urstadt Biddle Properties has higher revenue and earnings than NRF Holdco. NRF Holdco is trading at a lower price-to-earnings ratio than Urstadt Biddle Properties, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares NRF Holdco and Urstadt Biddle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NRF Holdco -16.61% -17.86% -2.44%
Urstadt Biddle Properties 42.95% 13.19% 5.38%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NRF Holdco and Urstadt Biddle Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NRF Holdco 0 0 0 0 N/A
Urstadt Biddle Properties 0 3 0 0 2.00

Urstadt Biddle Properties has a consensus price target of $21.00, suggesting a potential upside of 10.58%. Given Urstadt Biddle Properties’ higher possible upside, analysts plainly believe Urstadt Biddle Properties is more favorable than NRF Holdco.

Insider & Institutional Ownership

69.7% of NRF Holdco shares are owned by institutional investors. Comparatively, 61.5% of Urstadt Biddle Properties shares are owned by institutional investors. 2.4% of NRF Holdco shares are owned by company insiders. Comparatively, 20.1% of Urstadt Biddle Properties 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.

Summary

Urstadt Biddle Properties beats NRF Holdco on 9 of the 13 factors compared between the two stocks.

NRF Holdco Company Profile

NRF Holdco LLC. is a commercial real estate company. The Company invests in multiple asset classes across commercial real estate (CRE). Its portfolio consists of healthcare, hotel, manufactured housing communities, net lease and multifamily properties. The Company also invests in other opportunistic real estate investments, such as indirect interests in real estate through its investments in private equity funds (PE Investments). The Company also acquires and operates hotel and certain healthcare properties. The Company’s segments include Real Estate, Commercial Real Estate Debt (CRE debt), Commercial Real Estate Securities, N-Star CDOs and Corporate. Its real estate equity investments that operate under the REIT Investment Diversification and Empowerment Act (RIDEA) structure generate resident and hotel guest related income from short-term residential agreements. The Company is externally managed and advised by an affiliate of NorthStar Asset Management Group Inc.

Urstadt Biddle Properties Company Profile

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

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