Reviewing Mack-Cali Realty Corporation (CLI) and SL Green Realty Corporation (SLG)
Mack-Cali Realty Corporation (NYSE: CLI) and SL Green Realty Corporation (NYSE:SLG) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Insider and Institutional Ownership
99.5% of Mack-Cali Realty Corporation shares are held by institutional investors. 6.8% of Mack-Cali Realty Corporation shares are held by company insiders. Comparatively, 3.1% of SL Green Realty Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Mack-Cali Realty Corporation and SL Green Realty Corporation’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%|
|SL Green Realty Corporation||7.70%||1.51%||0.76%|
Valuation and Earnings
This table compares Mack-Cali Realty Corporation and SL Green Realty Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mack-Cali Realty Corporation||$641.51 million||3.20||$321.83 million||($0.26)||-87.92|
|SL Green Realty Corporation||$1.53 billion||6.22||$871.44 million||$1.03||93.40|
SL Green Realty Corporation has higher revenue and earnings than Mack-Cali Realty Corporation. Mack-Cali Realty Corporation is trading at a lower price-to-earnings ratio than SL Green Realty Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for Mack-Cali Realty Corporation and SL Green Realty Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mack-Cali Realty Corporation||1||2||4||0||2.43|
|SL Green Realty Corporation||0||7||7||0||2.50|
Mack-Cali Realty Corporation currently has a consensus target price of $28.43, indicating a potential upside of 24.36%. SL Green Realty Corporation has a consensus target price of $115.15, indicating a potential upside of 19.70%. Given Mack-Cali Realty Corporation’s higher possible upside, analysts plainly believe Mack-Cali Realty Corporation is more favorable than SL Green Realty Corporation.
Risk & Volatility
Mack-Cali Realty Corporation has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, SL Green Realty Corporation has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.
Mack-Cali Realty Corporation pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. SL Green Realty Corporation pays an annual dividend of $3.10 per share and has a dividend yield of 3.2%. Mack-Cali Realty Corporation pays out -307.7% of its earnings in the form of a dividend. SL Green Realty Corporation pays out 301.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SL Green Realty Corporation has increased its dividend for 5 consecutive years. Mack-Cali Realty Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
SL Green Realty Corporation beats Mack-Cali Realty Corporation on 10 of the 15 factors compared between the two stocks.
Mack-Cali Realty Corporation Company Profile
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.
SL Green Realty Corporation Company Profile
SL Green Realty Corp. is a self-managed real estate investment trust (REIT), with in-house capabilities in property management, acquisitions and dispositions, financing, development and redevelopment, construction and leasing. The Company operates through two segments: real estate, and debt and preferred equity investments. It acquires, owns, repositions, manages and leases commercial office, retail and multifamily properties in the New York Metropolitan area. Its debt and preferred equity activities include purchases and originations, inclusive of advances under future funding obligations, discount and fee amortization, and paid-in-kind interest. As of December 31, 2016, the Company owned or held interests in 24 consolidated commercial office buildings encompassing approximately 16.1 million rentable square feet and seven unconsolidated commercial office buildings encompassing approximately 6.6 million rentable square feet located primarily in midtown Manhattan.
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