Urstadt Biddle Properties (NYSE: UBA) and Monmouth Real Estate Investment Corporation (NYSE:MNR) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Risk and Volatility

Urstadt Biddle Properties has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Monmouth Real Estate Investment Corporation has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Urstadt Biddle Properties and Monmouth Real Estate Investment Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Urstadt Biddle Properties 0 0 1 0 3.00
Monmouth Real Estate Investment Corporation 0 1 3 0 2.75

Urstadt Biddle Properties presently has a consensus target price of $22.00, indicating a potential upside of 5.16%. Monmouth Real Estate Investment Corporation has a consensus target price of $16.38, indicating a potential upside of 1.21%. Given Urstadt Biddle Properties’ stronger consensus rating and higher possible upside, research analysts clearly believe Urstadt Biddle Properties is more favorable than Monmouth Real Estate Investment Corporation.

Earnings and Valuation

This table compares Urstadt Biddle Properties and Monmouth Real Estate Investment Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Urstadt Biddle Properties $120.70 million 6.53 $71.51 million $1.05 19.92
Monmouth Real Estate Investment Corporation $108.67 million 11.07 $82.64 million $0.30 53.93

Monmouth Real Estate Investment Corporation has higher revenue, but lower earnings than Urstadt Biddle Properties. Urstadt Biddle Properties is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Urstadt Biddle Properties and Monmouth Real Estate Investment Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Urstadt Biddle Properties 44.94% 13.56% 5.68%
Monmouth Real Estate Investment Corporation 32.02% 7.91% 2.69%

Dividends

Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 5.1%. Monmouth Real Estate Investment Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 4.0%. Urstadt Biddle Properties pays out 101.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monmouth Real Estate Investment Corporation pays out 213.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Urstadt Biddle Properties has raised its dividend for 17 consecutive years and Monmouth Real Estate Investment Corporation has raised its dividend for 2 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

59.3% of Urstadt Biddle Properties shares are owned by institutional investors. Comparatively, 60.6% of Monmouth Real Estate Investment Corporation shares are owned by institutional investors. 20.1% of Urstadt Biddle Properties shares are owned by insiders. Comparatively, 5.3% of Monmouth Real Estate Investment Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Urstadt Biddle Properties beats Monmouth Real Estate Investment Corporation on 12 of the 17 factors compared between the two stocks.

About Urstadt Biddle Properties

Urstadt Biddle Properties Inc. is a real estate investment trust, which is engaged in the acquisition, ownership and management of commercial real estate. The Company owns Ridgeway Shopping Center (Ridgeway) property, which is located in Stamford, Connecticut. Its segments include Ridgeway and All Other Operating Segments. Its primary business is the ownership of real estate investments with primary emphasis on properties in the metropolitan New York tri-state area outside of the City of New York. As of October 31, 2016, the Company’s properties consisted principally of neighborhood and community shopping centers and seven office buildings. As of March 30, 2017, the Company owned or had equity interests in 80 properties, including neighborhood and community shopping centers, office buildings, single tenant retail or restaurant properties and office/retail mixed-use properties located in four states throughout the United States.

About Monmouth Real Estate Investment Corporation

Monmouth Real Estate Investment Corporation is a real estate investment trust (REIT). The Company’s primary business is the ownership of real estate. Its investment focus is to own single tenant, industrial buildings and leased to investment-grade tenants or their subsidiaries on long-term net leases. In addition, the Company owns a portfolio of REIT investment securities. Its assets are situated near airports, transportation hubs and manufacturing plants. The Company’s featured properties include ULTA Cosmetics, Milwaukee Tool, Beam Suntory, FedEx Supply Chain Services, Coca-Cola, Best Buy, International Paper, Home Depot, FedEx Ground, Actavis, Anheuser-Busch, United Technologies, Kellogg’s, Siemens, National Oilwell and Cardinal Health. The Company’s property portfolio consists of approximately 105 properties located in over 30 states, containing a total of approximately 17.9 million rentable square feet.

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