Head-To-Head Review: UMH Properties (NYSE:UMH) vs. Clipper Realty (NYSE:CLPR)

Clipper Realty (NYSE:CLPR) and UMH Properties (NYSE:UMH) are both small-cap real estate companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Clipper Realty and UMH Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	1	0	0	2.00
UMH Properties	0	2	2	1	2.80

UMH Properties has a consensus target price of $17.25, suggesting a potential upside of 4.48%. Given UMH Properties’ stronger consensus rating and higher possible upside, analysts plainly believe UMH Properties is more favorable than Clipper Realty.

Profitability

This table compares Clipper Realty and UMH Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-8.36%	N/A	-1.03%
UMH Properties	11.55%	5.40%	1.86%

Institutional and Insider Ownership

37.6% of Clipper Realty shares are owned by institutional investors. Comparatively, 75.4% of UMH Properties shares are owned by institutional investors. 54.6% of Clipper Realty shares are owned by company insiders. Comparatively, 8.3% of UMH Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Clipper Realty and UMH Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$153.20 million	0.35	-$19.90 million	($0.93)	-3.58
UMH Properties	$261.75 million	5.39	$26.50 million	$0.12	137.58

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

Risk & Volatility

Clipper Realty has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, UMH Properties has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.4%. UMH Properties pays an annual dividend of $0.90 per share and has a dividend yield of 5.5%. Clipper Realty pays out -40.9% of its earnings in the form of a dividend. UMH Properties pays out 750.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UMH Properties has raised its dividend for 4 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

UMH Properties beats Clipper Realty on 14 of the 18 factors compared between the two stocks.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.

About UMH Properties

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia. UMH also has an ownership interest in and operates two communities in Florida, containing 363 sites, through its joint venture with Nuveen Real Estate