Mackenzie Realty Capital (NASDAQ:MKZR – Get Free Report) and Orion Office REIT (NYSE:ONL – Get Free Report) are both small-cap real estate companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Institutional and Insider Ownership
79.9% of Orion Office REIT shares are held by institutional investors. 6.3% of Mackenzie Realty Capital shares are held by insiders. Comparatively, 1.6% of Orion Office REIT shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Mackenzie Realty Capital and Orion Office REIT”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mackenzie Realty Capital | $19.38 million | 0.16 | -$25.92 million | ($6.15) | -0.23 |
| Orion Office REIT | $142.92 million | 0.98 | -$139.31 million | ($1.69) | -1.46 |
Mackenzie Realty Capital has higher earnings, but lower revenue than Orion Office REIT. Orion Office REIT is trading at a lower price-to-earnings ratio than Mackenzie Realty Capital, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Mackenzie Realty Capital has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500. Comparatively, Orion Office REIT has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.
Dividends
Mackenzie Realty Capital pays an annual dividend of $2.00 per share and has a dividend yield of 142.9%. Orion Office REIT pays an annual dividend of $0.08 per share and has a dividend yield of 3.2%. Mackenzie Realty Capital pays out -32.5% of its earnings in the form of a dividend. Orion Office REIT pays out -4.7% 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. Mackenzie Realty Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Mackenzie Realty Capital and Orion Office REIT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mackenzie Realty Capital | -90.30% | -18.99% | -7.07% |
| Orion Office REIT | -65.66% | -14.85% | -7.95% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Mackenzie Realty Capital and Orion Office REIT, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mackenzie Realty Capital | 1 | 0 | 0 | 0 | 1.00 |
| Orion Office REIT | 1 | 0 | 1 | 0 | 2.00 |
Orion Office REIT has a consensus price target of $3.50, suggesting a potential upside of 41.70%. Given Orion Office REIT’s stronger consensus rating and higher probable upside, analysts plainly believe Orion Office REIT is more favorable than Mackenzie Realty Capital.
Summary
Orion Office REIT beats Mackenzie Realty Capital on 10 of the 16 factors compared between the two stocks.
About Mackenzie Realty Capital
MacKenzie Realty Capital Inc. is a REIT which focused on investing in multifamily housing and office real estate properties located principally in the United States. MacKenzie Realty Capital Inc. is based in ORINDA, Calif.
About Orion Office REIT
Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the U.S. The portfolio is leased primarily on a single-tenant net lease basis to creditworthy tenants. The company's team of experienced industry leaders employs a proven, cycle-tested investment evaluation framework which serves as the lens through which capital allocation decisions are made for the current portfolio and future acquisitions.
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