Contrasting Douglas Emmett (NYSE:DEI) and Seritage Growth Properties (NYSE:SRG)

Seritage Growth Properties (NYSE:SRG) and Douglas Emmett (NYSE:DEI) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Risk and Volatility

Seritage Growth Properties has a beta of 2.43, meaning that its share price is 143% more volatile than the S&P 500. Comparatively, Douglas Emmett has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Seritage Growth Properties and Douglas Emmett, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Seritage Growth Properties	1	0	0	0	1.00
Douglas Emmett	1	8	1	0	2.00

Douglas Emmett has a consensus price target of $12.94, suggesting a potential upside of 38.44%. Given Douglas Emmett’s stronger consensus rating and higher probable upside, analysts plainly believe Douglas Emmett is more favorable than Seritage Growth Properties.

Earnings and Valuation

This table compares Seritage Growth Properties and Douglas Emmett”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Seritage Growth Properties	$17.62 million	8.84	-$153.54 million	($1.42)	-1.95
Douglas Emmett	$1.00 billion	1.56	$16.27 million	$0.09	103.83

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

Insider and Institutional Ownership

78.9% of Seritage Growth Properties shares are held by institutional investors. Comparatively, 97.4% of Douglas Emmett shares are held by institutional investors. 0.6% of Seritage Growth Properties shares are held by insiders. Comparatively, 15.1% of Douglas Emmett shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Seritage Growth Properties and Douglas Emmett’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Seritage Growth Properties	-404.37%	-20.13%	-12.10%
Douglas Emmett	1.62%	0.46%	0.17%

Summary

Douglas Emmett beats Seritage Growth Properties on 12 of the 14 factors compared between the two stocks.

About Seritage Growth Properties

Seritage Growth Properties operates as a real estate investment trust. The firm engages in the acquisition, ownership, development, redevelopment, management, and leasing of retail properties throughout the United States. Its property portfolio includes mall, shopping centers and freestanding locations. The company was founded on June 3, 2015 and is headquartered in New York, NY.

About Douglas Emmett

Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.