One Liberty Properties (NYSE: OLP) and Whitestone REIT (NYSE:WSR) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Earnings & Valuation

This table compares One Liberty Properties and Whitestone REIT’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
One Liberty Properties $74.78 million 6.00 $48.43 million $1.17 20.59
Whitestone REIT $112.35 million 4.53 $49.43 million $0.13 101.55

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

Dividends

One Liberty Properties pays an annual dividend of $1.72 per share and has a dividend yield of 7.1%. Whitestone REIT pays an annual dividend of $1.14 per share and has a dividend yield of 8.6%. One Liberty Properties pays out 147.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Whitestone REIT pays out 877.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. One Liberty Properties has raised its dividend for 4 consecutive years.

Profitability

This table compares One Liberty Properties and Whitestone REIT’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
One Liberty Properties 29.14% 7.49% 2.92%
Whitestone REIT 4.36% 1.69% 0.54%

Risk and Volatility

One Liberty Properties has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500. Comparatively, Whitestone REIT has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for One Liberty Properties and Whitestone REIT, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
One Liberty Properties 0 2 0 0 2.00
Whitestone REIT 1 1 2 0 2.25

One Liberty Properties currently has a consensus price target of $24.75, suggesting a potential upside of 2.74%. Whitestone REIT has a consensus price target of $14.67, suggesting a potential upside of 11.11%. Given Whitestone REIT’s stronger consensus rating and higher possible upside, analysts plainly believe Whitestone REIT is more favorable than One Liberty Properties.

Institutional & Insider Ownership

41.7% of One Liberty Properties shares are held by institutional investors. Comparatively, 43.8% of Whitestone REIT shares are held by institutional investors. 8.6% of One Liberty Properties shares are held by insiders. Comparatively, 5.3% of Whitestone REIT shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Whitestone REIT beats One Liberty Properties on 9 of the 17 factors compared between the two stocks.

About One Liberty Properties

One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company acquires, owns and manages a geographically diversified portfolio consisting of retail, industrial, flex, and health and fitness properties. As of December 31, 2016, the Company owned 114 properties and participated in joint ventures that own five properties. These 119 properties are located in 30 states and have an aggregate of approximately 10.1 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by its joint ventures). As of December 31, 2016, the Company’s property locations included Fort Mill, South Carolina; Royersford, Pennsylvania; Round Rock, Texas; W.Hartford, Connecticut; Delport, Missouri; Brooklyn, New York City; Lakemoor, Illinois; Tucker, Georgia; Cedar Park, Texas; Lake Charles, Louisiana; Sandy Springs, Georgia; Wichita, Kansas; Melville, New York; Ronkonkoma, New York, and Niles, Illinois.

About Whitestone REIT

Whitestone REIT is a real estate investment trust. The Company is engaged in owning and operating commercial properties in culturally diverse markets in various metropolitan areas. The Company’s acquisition targets are located in densely populated, culturally diverse neighborhoods, primarily in and around Austin, Chicago, Dallas-Fort Worth, Houston, Phoenix and San Antonio. As of December 31, 2016, the Company owned or held interests in 69 commercial properties, including 15 properties in Houston, five properties in Dallas-Fort Worth, three properties in San Antonio, four properties in Austin, 27 properties in the Scottsdale and Phoenix, Arizona metropolitan areas, and one property in Buffalo Grove, Illinois, a suburb of Chicago. As of December 31, 2016, the Company’s properties included Heritage Trace Plaza, Headquarters Village, La Mirada, The Marketplace at Central, Mercado at Scottsdale Ranch, Paradise Plaza, Parkside Village North, Pima Norte and Quinlan Crossing.

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