Cedar Realty Trust (NYSE: CDR) and Taubman Centers (NYSE:TCO) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Cedar Realty Trust has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Taubman Centers has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares Cedar Realty Trust and Taubman Centers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cedar Realty Trust 11.42% 4.18% 1.34%
Taubman Centers 13.21% -75.87% 2.03%

Earnings & Valuation

This table compares Cedar Realty Trust and Taubman Centers’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cedar Realty Trust $151.09 million 3.65 $8.94 million ($0.07) -86.29
Taubman Centers $612.56 million 6.28 $132.61 million $1.05 60.36

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

Institutional and Insider Ownership

92.7% of Cedar Realty Trust shares are owned by institutional investors. 4.5% of Cedar Realty Trust shares are owned by insiders. Comparatively, 31.2% of Taubman Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Cedar Realty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Taubman Centers pays an annual dividend of $2.50 per share and has a dividend yield of 3.9%. Cedar Realty Trust pays out -285.7% of its earnings in the form of a dividend. Taubman Centers pays out 238.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cedar Realty Trust has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a summary of current ratings and target prices for Cedar Realty Trust and Taubman Centers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cedar Realty Trust 1 2 3 0 2.33
Taubman Centers 1 7 2 0 2.10

Cedar Realty Trust presently has a consensus target price of $5.75, suggesting a potential downside of 4.80%. Taubman Centers has a consensus target price of $63.57, suggesting a potential upside of 0.30%. Given Taubman Centers’ higher probable upside, analysts clearly believe Taubman Centers is more favorable than Cedar Realty Trust.

Summary

Taubman Centers beats Cedar Realty Trust on 10 of the 17 factors compared between the two stocks.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a real estate investment trust (REIT). The Company focuses on ownership and operation of grocery-anchored shopping centers straddling the Washington District of Columbia (DC) to Boston corridor. As of December 31, 2016, the Company owned and managed a portfolio of 61 operating properties (excluding properties held for sale) totaling approximately 9.1 million square feet of gross leasable area (GLA). The Company focuses its investment activities on grocery-anchored shopping centers. The Company’s properties portfolio comprises 26 properties in Pennsylvania, eight properties in Massachusetts, seven properties in Connecticut, seven properties in Maryland / Washington, D.C, eight properties in Virginia, four properties in New Jersey and one property in New York. The Company’s 106 are going to expire in the year 2017. The Company conducts all of its businesses through the Cedar Realty Trust Partnership L.P. (the Operating Partnership).

About Taubman Centers

Taubman Centers, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties. The Company owns, leases, acquires, disposes of, develops, expands and manages regional and super-regional shopping centers and interests therein. Its owned portfolio of operating centers as of December 31, 2016 consisted of 23 urban and suburban shopping centers operating in 11 the United States states, Puerto Rico, South Korea, and China. The consolidated businesses consist of shopping centers and entities that are controlled by ownership or contractual agreements, The Taubman Company LLC (Manager), and Taubman Properties Asia LLC and its subsidiaries (Taubman Asia).

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