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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Seritage Growth Properties and New York REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Seritage Growth Properties 1 1 1 0 2.00
New York REIT 0 0 1 0 3.00

Seritage Growth Properties currently has a consensus price target of $43.00, suggesting a potential downside of 6.34%. New York REIT has a consensus price target of $9.75, suggesting a potential upside of 25.00%. Given New York REIT’s stronger consensus rating and higher probable upside, analysts clearly believe New York REIT is more favorable than Seritage Growth Properties.

Dividends

Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. New York REIT does not pay a dividend. Seritage Growth Properties pays out -42.2% of its earnings in the form of a dividend. New York REIT has raised its dividend for 2 consecutive years.

Profitability

This table compares Seritage Growth Properties and New York REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Seritage Growth Properties -31.23% -5.52% -2.83%
New York REIT N/A -5.71% -2.70%

Valuation & Earnings

This table compares Seritage Growth Properties and New York REIT’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Seritage Growth Properties $248.20 million 6.28 $163.67 million ($2.37) -19.37
New York REIT $174.99 million 7.49 $52.35 million ($0.50) -15.60

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

Institutional & Insider Ownership

74.9% of Seritage Growth Properties shares are owned by institutional investors. Comparatively, 70.6% of New York REIT shares are owned by institutional investors. 9.8% of Seritage Growth Properties shares are owned by company insiders. Comparatively, 0.2% of New York REIT shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Seritage Growth Properties has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, New York REIT has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Seritage Growth Properties Company Profile

Seritage Growth Properties (Seritage) is a self-administered and self-managed real estate investment trust. The Company is engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. Its assets are held by and its operations are primarily conducted through, directly or indirectly, Seritage Growth Properties, L.P. (Operating Partnership). As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states. As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.

New York REIT Company Profile

New York REIT, Inc. is a real estate investment trust. The Company owns a portfolio of commercial real estate. The Company’s business is primarily conducted through New York Recovery Operating Partnership, L.P. As of December 31, 2016, the Company owned 19 properties, which aggregated 3.3 million rentable square feet. The Company holds interests in properties of various types, such as office, retail, hotel, parking and storage. The Company’s properties include Design Center, 416 Washington Street, 50 Varick Street, 1440 Broadway, One Worldwide Plaza, 256 West 38th Street, 229 West 36th Street, 333 West 34th Street, 367-387 Bleecker Street, 33 West 56th Street (garage) and 350 West 42nd Street.

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