CIM Commercial Trust Corporation (NASDAQ: CMCT) and Investors Real Estate Trust (NYSE:IRET) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitabiliy, earnings and risk.

Valuation and Earnings

This table compares CIM Commercial Trust Corporation and Investors Real Estate Trust’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CIM Commercial Trust Corporation $264.26 million 4.99 $104.47 million N/A N/A
Investors Real Estate Trust $205.74 million 3.52 $99.75 million $0.26 23.08

CIM Commercial Trust Corporation has higher revenue and earnings than Investors Real Estate Trust.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for CIM Commercial Trust Corporation and Investors Real Estate Trust, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CIM Commercial Trust Corporation 0 0 0 0 N/A
Investors Real Estate Trust 0 2 1 0 2.33

Investors Real Estate Trust has a consensus price target of $6.18, suggesting a potential upside of 3.06%. Given Investors Real Estate Trust’s higher probable upside, analysts plainly believe Investors Real Estate Trust is more favorable than CIM Commercial Trust Corporation.

Dividends

CIM Commercial Trust Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 3.2%. Investors Real Estate Trust pays an annual dividend of $0.28 per share and has a dividend yield of 4.7%. Investors Real Estate Trust pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

CIM Commercial Trust Corporation has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500. Comparatively, Investors Real Estate Trust has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Institutional & Insider Ownership

0.6% of CIM Commercial Trust Corporation shares are owned by institutional investors. Comparatively, 52.4% of Investors Real Estate Trust shares are owned by institutional investors. 98.2% of CIM Commercial Trust Corporation shares are owned by company insiders. Comparatively, 1.3% of Investors Real Estate Trust shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares CIM Commercial Trust Corporation and Investors Real Estate Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CIM Commercial Trust Corporation 76.25% 19.10% 9.45%
Investors Real Estate Trust 21.07% -2.51% -0.80%

Summary

CIM Commercial Trust Corporation beats Investors Real Estate Trust on 8 of the 14 factors compared between the two stocks.

CIM Commercial Trust Corporation Company Profile

CIM Commercial Trust Corporation, together with its subsidiaries, primarily invests in, owns, and operates Class A and office investments in urban communities throughout the United States. These communities are located in areas that include traditional downtown areas and suburban main streets. The Company’s segments are office, hotel, multifamily and lending. The products for its office segment primarily include rental of office space and other tenant services, including tenant reimbursements, parking, and storage space rental. The products for its multifamily segment include rental of apartments and other tenant services. The products for its hotel segment include revenues generated from the operations of hotel properties and rental income generated from a garage located directly across the street from one of the hotels. The Company is managed by affiliates of CIM Group, L.P. (CIM), a vertically integrated, full-service investment manager.

Investors Real Estate Trust Company Profile

Investors Real Estate Trust is a self-advised equity real estate investment trust (REIT). The Company’s business consists of owning and operating income-producing real estate properties. Its segments include Multifamily, Healthcare and All Other. Its investments consist of multifamily and healthcare properties located primarily in the upper Midwest states of Minnesota and North Dakota. It conducts its business operations through its operating partnership, IRET Properties, which is principally engaged in acquiring, owning, operating and leasing real estate. It invests in multifamily properties and commercial properties that are leased to single or multiple tenants, usually for approximately five years or longer. As of May 26, 2017, the Company held for investment 86 multifamily properties containing 12,813 apartment units and 44 commercial properties, consisting of healthcare, industrial, office and retail, containing approximately 2.7 million square feet of leasable space.

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