CBL & Associates Properties (CBL) vs. Alexandria Real Estate Equities (ARE) Head-To-Head Comparison

Alexandria Real Estate Equities (NYSE: ARE) and CBL & Associates Properties (NYSE:CBL) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Profitability

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This table compares Alexandria Real Estate Equities and CBL & Associates Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alexandria Real Estate Equities 14.77% 3.08% 1.56%
CBL & Associates Properties 13.04% 8.14% 1.77%

Volatility and Risk

Alexandria Real Estate Equities has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, CBL & Associates Properties has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

98.9% of Alexandria Real Estate Equities shares are held by institutional investors. Comparatively, 79.8% of CBL & Associates Properties shares are held by institutional investors. 1.6% of Alexandria Real Estate Equities shares are held by insiders. Comparatively, 11.7% of CBL & Associates Properties shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Alexandria Real Estate Equities and CBL & Associates Properties’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alexandria Real Estate Equities $1.13 billion 10.96 $169.09 million $6.02 20.28
CBL & Associates Properties $927.25 million 0.82 $120.94 million $2.08 2.12

Alexandria Real Estate Equities has higher revenue and earnings than CBL & Associates Properties. CBL & Associates Properties is trading at a lower price-to-earnings ratio than Alexandria Real Estate Equities, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Alexandria Real Estate Equities and CBL & Associates Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alexandria Real Estate Equities 0 1 5 0 2.83
CBL & Associates Properties 8 4 0 0 1.33

Alexandria Real Estate Equities presently has a consensus target price of $96.56, suggesting a potential downside of 20.90%. CBL & Associates Properties has a consensus target price of $6.47, suggesting a potential upside of 47.02%. Given CBL & Associates Properties’ higher probable upside, analysts clearly believe CBL & Associates Properties is more favorable than Alexandria Real Estate Equities.

Dividends

Alexandria Real Estate Equities pays an annual dividend of $3.60 per share and has a dividend yield of 2.9%. CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 18.2%. Alexandria Real Estate Equities pays out 59.8% of its earnings in the form of a dividend. CBL & Associates Properties pays out 38.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Alexandria Real Estate Equities has increased its dividend for 7 consecutive years. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Alexandria Real Estate Equities beats CBL & Associates Properties on 10 of the 17 factors compared between the two stocks.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc. is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems. As of December 31, 2016, the Company had 199 properties in North America. As of December 31, 2016, its asset base in North America consisted of 25.2 million square feet, including 19.9 million rentable square feet/foot (RSF) of operating properties, and development and redevelopment of under construction or pre-construction, as well as 5.3 million square feet of future ground-up development projects. Its properties are located in various areas, including Greater Boston, San Francisco, New York City, San Diego, Seattle, Maryland and Research Triangle Park. Its properties include Alexandria Technology Square, Alexandria Park at 128 and Alexandria Technology Center-Gateway.

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.

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