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

Profitability

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This table compares CBL & Associates Properties and Alexandria Real Estate Equities’ 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%
Alexandria Real Estate Equities 14.77% 3.08% 1.56%

Insider & Institutional Ownership

79.8% of CBL & Associates Properties shares are owned by institutional investors. Comparatively, 98.9% of Alexandria Real Estate Equities shares are owned by institutional investors. 11.7% of CBL & Associates Properties shares are owned by insiders. Comparatively, 1.5% of Alexandria Real Estate Equities shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CBL & Associates Properties and Alexandria Real Estate Equities’ top-line 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 0.81 $120.94 million $0.45 9.69
Alexandria Real Estate Equities $1.13 billion 11.26 $169.09 million $1.57 79.90

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 ratings for CBL & Associates Properties and Alexandria Real Estate Equities, as reported by MarketBeat.com.

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

CBL & Associates Properties currently has a consensus target price of $6.47, indicating a potential upside of 48.37%. Alexandria Real Estate Equities has a consensus target price of $96.56, indicating a potential downside of 23.03%. Given CBL & Associates Properties’ higher probable upside, analysts clearly believe CBL & Associates Properties is more favorable than Alexandria Real Estate Equities.

Dividends

CBL & Associates Properties pays an annual dividend of $0.80 per share and has a dividend yield of 18.3%. 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 out 177.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities pays out 229.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Alexandria Real Estate Equities has raised its dividend for 7 consecutive years. CBL & Associates Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

CBL & Associates Properties has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

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

CBL & Associates Properties Company Profile

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.

Alexandria Real Estate Equities Company Profile

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.

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