Contrasting CBL & Associates Properties (CBL) & First Potomac Realty Trust (NYSE:FPO)

CBL & Associates Properties (NYSE: CBL) and First Potomac Realty Trust (NYSE:FPO) are both small-cap financials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares CBL & Associates Properties and First Potomac Realty Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CBL & Associates Properties 13.04% 8.14% 1.77%
First Potomac Realty Trust -7.99% -2.35% -0.94%

Volatility and Risk

CBL & Associates Properties has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, First Potomac Realty Trust has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Insider & Institutional Ownership

93.1% of CBL & Associates Properties shares are held by institutional investors. Comparatively, 93.1% of First Potomac Realty Trust shares are held by institutional investors. 11.7% of CBL & Associates Properties shares are held by company insiders. Comparatively, 2.1% of First Potomac Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares CBL & Associates Properties and First Potomac Realty Trust’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CBL & Associates Properties $927.25 million 0.85 $120.94 million $0.44 10.48
First Potomac Realty Trust N/A N/A N/A $0.69 16.14

CBL & Associates Properties has higher revenue and earnings than First Potomac Realty Trust. CBL & Associates Properties is trading at a lower price-to-earnings ratio than First Potomac Realty Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for CBL & Associates Properties and First Potomac Realty Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CBL & Associates Properties 8 4 0 0 1.33
First Potomac Realty Trust 2 1 1 0 1.75

CBL & Associates Properties currently has a consensus price target of $8.47, indicating a potential upside of 83.70%. First Potomac Realty Trust has a consensus price target of $11.29, indicating a potential upside of 1.32%. Given CBL & Associates Properties’ higher possible upside, equities analysts clearly believe CBL & Associates Properties is more favorable than First Potomac Realty Trust.

Dividends

CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 17.4%. First Potomac Realty Trust pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. CBL & Associates Properties pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. First Potomac Realty Trust pays out 58.0% of its earnings in the form of a dividend.

Summary

CBL & Associates Properties beats First Potomac Realty Trust on 9 of the 14 factors compared between the two stocks.

About CBL & Associates Properties

CBL & Associates Properties, Inc. is a self-managed, self-administered, integrated real estate investment trust. The Company owns, develops, acquires, leases, manages and operates regional shopping malls, open-air and mixed-use centers, outlet centers, associated centers, community centers and office properties. Its segments are Malls, Associated Centers, Community Centers and All Other. As of December 31, 2016, the Company owned a controlling interest in 65 Malls and non-controlling interests in nine Malls. As of December 31, 2016, the Company owned a controlling interest in 20 Associated Centers and a non-controlling interest in three Associated Centers. As of December 31, 2016, the Company owned a controlling interest in four Community Centers and a non-controlling interest in five Community Centers. As of December 31, 2016, the Company’s properties were located in 27 states, primarily in the southeastern and mid-western United States.

About First Potomac Realty Trust

First Potomac Realty Trust (First Potomac) is engaged in ownership, management, redevelopment and development of office and business park properties in the greater Washington, D.C. region. The Company’s segments include Washington, D.C., Maryland, Northern Virginia and Southern Virginia. The Company conducts its business through First Potomac Realty Investment Limited Partnership, its operating partnership. The Company’s portfolio consist a mix of single-tenant and multi-tenant office properties, and business parks. The office properties are single-story and multi-story buildings that are primarily for office uses, and business parks consists of buildings with office features combined with some industrial property space. As of December 31, 2016, the Company owned properties totaling 6.7 million square feet and had a non-controlling ownership interest in properties totaling an additional 0.9 million square feet through five unconsolidated joint ventures.

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