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

Institutional & Insider Ownership

63.3% of Clipper Realty shares are owned by institutional investors. Comparatively, 2.0% of Urstadt Biddle Properties shares are owned by institutional investors. 36.6% of Clipper Realty shares are owned by company insiders. Comparatively, 23.3% of Urstadt Biddle Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 2.9%. Urstadt Biddle Properties pays an annual dividend of $0.98 per share and has a dividend yield of 5.9%. Clipper Realty pays out 84.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties has raised its dividend for 3 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Clipper Realty -3.30% -2.17% -0.34%
Urstadt Biddle Properties 28.07% 9.80% 3.78%

Volatility and Risk

Clipper Realty has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500.

Valuation and Earnings

This table compares Clipper Realty and Urstadt Biddle Properties’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clipper Realty $110.00 million 2.14 -$3.63 million $0.45 29.31
Urstadt Biddle Properties $135.35 million 4.93 $37.46 million N/A N/A

Urstadt Biddle Properties has higher revenue and earnings than Clipper Realty.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Clipper Realty and Urstadt Biddle Properties, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 1 0 3.00
Urstadt Biddle Properties 0 0 0 0 N/A

Clipper Realty currently has a consensus price target of $16.00, suggesting a potential upside of 21.30%. Given Clipper Realty’s higher probable upside, analysts clearly believe Clipper Realty is more favorable than Urstadt Biddle Properties.

Summary

Urstadt Biddle Properties beats Clipper Realty on 10 of the 15 factors compared between the two stocks.

Clipper Realty Company Profile

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.

Urstadt Biddle Properties Company Profile

Urstadt Biddle Properties Inc. is a self-administered equity real estate investment trust which owns or has equity interests in 85 properties containing approximately 5.3 million square feet of space. Listed on the New York Stock Exchange since 1970, it provides investors with a means of participating in ownership of income-producing properties. It has paid 195 consecutive quarters of uninterrupted dividends to its shareholders since its inception and has raised total dividends to its shareholders for the last 25 consecutive years.

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