Clipper Realty (NASDAQ: CLPR) and Monogram Residential Trust (NYSE:MORE) are both small-cap financials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Clipper Realty and Monogram Residential Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clipper Realty -6.35% -3.57% -0.64%
Monogram Residential Trust 37.63% 7.00% 3.42%

Institutional and Insider Ownership

75.5% of Monogram Residential Trust shares are held by institutional investors. 0.4% of Monogram Residential Trust shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Monogram Residential Trust pays an annual dividend of $0.30 per share and has a dividend yield of 2.5%. Clipper Realty does not pay a dividend. Monogram Residential Trust pays out 46.2% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Clipper Realty and Monogram Residential Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clipper Realty $99.70 million 1.95 $43.09 million N/A N/A
Monogram Residential Trust $291.82 million 6.82 $144.44 million $0.65 18.34

Monogram Residential Trust has higher revenue and earnings than Clipper Realty.

Analyst Ratings

This is a breakdown of current ratings and target prices for Clipper Realty and Monogram Residential Trust, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 2 0 3.00
Monogram Residential Trust 0 7 0 0 2.00

Clipper Realty currently has a consensus price target of $15.50, suggesting a potential upside of 41.81%. Monogram Residential Trust has a consensus price target of $11.75, suggesting a potential downside of 1.43%. Given Clipper Realty’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Clipper Realty is more favorable than Monogram Residential Trust.

Summary

Monogram Residential Trust beats Clipper Realty on 9 of the 13 factors compared between the two stocks.

About Clipper Realty

Clipper Realty, Inc. is a real estate investment trust, which acquires, owns, manages, operates and repositions multi-family residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn. The Company’s segments include Commercial and Residential. As of June 30, 2016, it owned two residential/retail rental properties at 50 Murray Street and 53 Park Place in the Tribeca neighborhood of Manhattan, referred to as the Tribeca House properties. As of June 30, 2016, it also owned a residential property complex in the East Flatbush neighborhood of Brooklyn consisting of 59 buildings, referred to as the Flatbush Gardens properties or complex. As of June 30, 2016, it owned two primarily commercial properties in Downtown Brooklyn (one of which included 36 residential apartment units), referred to as the 141 Livingston Street property and the 250 Livingston Street property, and also owned the Aspen property.

About Monogram Residential Trust

Monogram Residential Trust, Inc. is a self-managed real estate investment trust (REIT). The Company invests in, develops and operates multifamily communities offering location and lifestyle amenities. The Company also invests in stabilized operating communities and communities in various phases of development, with a focus on communities in select markets across the United States. These include luxury high-rise, mid-rise and garden style multifamily communities. As of December 31, 2016, Monogram’s portfolio includes investments in 51 multifamily communities in 10 states comprising 14,473 residential units. As of September 30, 2016, the Company held ownership interests in equity investments, including 47 operating multifamily communities (including one development in lease up) containing 13,022 residential units in 10 states, all of which are consolidated for financial reporting purposes.

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