Mack-Cali Realty Corporation (NYSE: CLI) and Equity Commonwealth (NYSE:EQC) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Insider & Institutional Ownership

98.6% of Mack-Cali Realty Corporation shares are held by institutional investors. Comparatively, 93.4% of Equity Commonwealth shares are held by institutional investors. 6.8% of Mack-Cali Realty Corporation shares are held by company insiders. Comparatively, 1.0% of Equity Commonwealth shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.4%. Equity Commonwealth does not pay a dividend. Mack-Cali Realty Corporation pays out -307.7% of its earnings in the form of a dividend.

Profitability

This table compares Mack-Cali Realty Corporation and Equity Commonwealth’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mack-Cali Realty Corporation -3.31% -1.21% -0.44%
Equity Commonwealth 28.50% 3.69% 2.52%

Volatility & Risk

Mack-Cali Realty Corporation has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Equity Commonwealth has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Mack-Cali Realty Corporation and Equity Commonwealth, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mack-Cali Realty Corporation 1 3 2 0 2.17
Equity Commonwealth 0 3 0 0 2.00

Mack-Cali Realty Corporation currently has a consensus target price of $29.80, indicating a potential upside of 25.16%. Equity Commonwealth has a consensus target price of $32.00, indicating a potential upside of 5.09%. Given Mack-Cali Realty Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Mack-Cali Realty Corporation is more favorable than Equity Commonwealth.

Earnings & Valuation

This table compares Mack-Cali Realty Corporation and Equity Commonwealth’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mack-Cali Realty Corporation $641.51 million 3.33 $321.83 million ($0.26) -91.58
Equity Commonwealth $409.33 million 9.23 $194.30 million $0.86 35.41

Mack-Cali Realty Corporation has higher revenue and earnings than Equity Commonwealth. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than Equity Commonwealth, indicating that it is currently the more affordable of the two stocks.

Summary

Mack-Cali Realty Corporation beats Equity Commonwealth on 10 of the 16 factors compared between the two stocks.

About Mack-Cali Realty Corporation

Mack-Cali Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). The Company owns and operates a real estate portfolio of Class A office and office/flex properties. It operates in three segments: commercial and other real estate, multi-family real estate and multi-family services. Its commercial and other real estate provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate, and multi-family real estate portfolio. Its multi-family services business also provides similar services for third parties. It owned or had interests in approximately 248 properties, consisting of approximately 119 office and approximately 110 flex properties, totaling approximately 26.6 million square feet, leased to approximately 1,600 commercial tenants and approximately 19 multi-family rental properties containing approximately 5,614 residential units, plus developable land.

About Equity Commonwealth

Equity Commonwealth is an internally managed and self-advised real estate investment trust. The Company is engaged in the ownership and operation primarily of office buildings across the United States. The Company conducts its activities primarily through EQC Operating Trust (the Operating Trust). As of December 31, 2016, the Company’s portfolio included 33 properties, one land parcel and one property taken out of a service, classified as a land parcel, with a combined 16.1 million square feet. As of December 31, 2016, its properties included Parkshore Plaza; 1225 Seventeenth Street; 1601 Dry Creek Drive; 97 Newberry Road; 33 Stiles Lane; 802 Delaware Avenue; 6600 North Military Trail; East Eisenhower Parkway; 2250 Pilot Knob Road; 411 Farwell Avenue; Cherrington Corporate Center; 1500 Market Street; Foster Plaza; 4515 Seton Center Parkway; Bridgepoint Square, and Research Park. As of December 31, 2016, the Company’s land parcels included 625 Crane Street and Cabot Business Park Land.

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