Mack Cali Realty (NYSE:CLI) and Hannon Armstrong Sustnbl Infrstr Cap (NYSE:HASI) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Mack Cali Realty and Hannon Armstrong Sustnbl Infrstr Cap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mack Cali Realty 1 5 0 0 1.83
Hannon Armstrong Sustnbl Infrstr Cap 0 2 5 0 2.71

Mack Cali Realty currently has a consensus target price of $20.25, suggesting a potential downside of 3.94%. Hannon Armstrong Sustnbl Infrstr Cap has a consensus target price of $24.86, suggesting a potential upside of 6.00%. Given Hannon Armstrong Sustnbl Infrstr Cap’s stronger consensus rating and higher probable upside, analysts plainly believe Hannon Armstrong Sustnbl Infrstr Cap is more favorable than Mack Cali Realty.

Earnings & Valuation

This table compares Mack Cali Realty and Hannon Armstrong Sustnbl Infrstr Cap’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mack Cali Realty $616.20 million 3.09 $23.18 million $2.23 9.45
Hannon Armstrong Sustnbl Infrstr Cap $105.57 million 13.83 $30.85 million $1.05 22.33

Hannon Armstrong Sustnbl Infrstr Cap has lower revenue, but higher earnings than Mack Cali Realty. Mack Cali Realty is trading at a lower price-to-earnings ratio than Hannon Armstrong Sustnbl Infrstr Cap, indicating that it is currently the more affordable of the two stocks.

Dividends

Mack Cali Realty pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Hannon Armstrong Sustnbl Infrstr Cap pays an annual dividend of $1.32 per share and has a dividend yield of 5.6%. Mack Cali Realty pays out 35.9% of its earnings in the form of a dividend. Hannon Armstrong Sustnbl Infrstr Cap pays out 125.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mack Cali Realty has increased its dividend for 3 consecutive years.

Risk and Volatility

Mack Cali Realty has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Hannon Armstrong Sustnbl Infrstr Cap has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Institutional and Insider Ownership

99.0% of Mack Cali Realty shares are held by institutional investors. Comparatively, 61.7% of Hannon Armstrong Sustnbl Infrstr Cap shares are held by institutional investors. 6.8% of Mack Cali Realty shares are held by insiders. Comparatively, 5.3% of Hannon Armstrong Sustnbl Infrstr Cap shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Mack Cali Realty and Hannon Armstrong Sustnbl Infrstr Cap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mack Cali Realty 6.81% 2.19% 0.75%
Hannon Armstrong Sustnbl Infrstr Cap 28.56% 9.41% 2.69%

Summary

Hannon Armstrong Sustnbl Infrstr Cap beats Mack Cali Realty on 10 of the 17 factors compared between the two stocks.

About Mack Cali Realty

One of the country's leading real estate investment trusts (REITs), Mack-Cali Realty Corporation is an owner, manager and developer of premier office and multifamily properties in select waterfront and transit-oriented markets throughout the Northeast. Mack-Cali is headquartered in Jersey City, New Jersey, and is the visionary behind the city's flourishing waterfront, where the company is leading development, improvement and place-making initiatives for Harborside, a master-planned destination comprised of class A office, luxury apartments, diverse retail and restaurants, and public spaces. A fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

About Hannon Armstrong Sustnbl Infrstr Cap

Hannon Armstrong Sustainable Infrastructure Capital, Inc. provides capital and services to the energy efficiency, renewable energy, and other sustainable infrastructure markets in the United States. The company's projects include energy efficiency projects that reduce a building's or facility's energy usage or cost through enhancing or installing various building components, including heating, ventilation, and air conditioning systems, as well as lighting, energy controls, roofs, windows, building shells, and/or combined heat and power systems. Its projects also comprise renewable energy projects, which deploy cleaner energy sources, such as solar and wind to generate power production; and other sustainable infrastructure projects, including upgraded transmission or distribution systems, water and storm water infrastructures, and seismic retrofits and other projects. The company qualifies as a real estate investment trust for U.S. federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Hannon Armstrong Sustainable Infrastructure Capital, Inc. is headquartered in Annapolis, Maryland.

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