Monmouth Real Estate Investment (NYSE: MNR) and Liberty Property Trust (NYSE:LPT) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Earnings and Valuation

This table compares Monmouth Real Estate Investment and Liberty Property Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monmouth Real Estate Investment $97.66 million 14.09 $40.27 million $0.32 56.16
Liberty Property Trust $746.71 million 8.73 $356.81 million $2.37 18.66

Liberty Property Trust has higher revenue and earnings than Monmouth Real Estate Investment. Liberty Property Trust is trading at a lower price-to-earnings ratio than Monmouth Real Estate Investment, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for Monmouth Real Estate Investment and Liberty Property Trust, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monmouth Real Estate Investment 0 1 4 0 2.80
Liberty Property Trust 0 4 3 0 2.43

Monmouth Real Estate Investment currently has a consensus price target of $17.50, indicating a potential downside of 2.62%. Liberty Property Trust has a consensus price target of $43.40, indicating a potential downside of 1.85%. Given Liberty Property Trust’s higher probable upside, analysts plainly believe Liberty Property Trust is more favorable than Monmouth Real Estate Investment.

Risk & Volatility

Monmouth Real Estate Investment has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Liberty Property Trust has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Profitability

This table compares Monmouth Real Estate Investment and Liberty Property Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monmouth Real Estate Investment 30.84% 7.65% 2.58%
Liberty Property Trust 47.78% 11.41% 5.69%

Dividends

Monmouth Real Estate Investment pays an annual dividend of $0.68 per share and has a dividend yield of 3.8%. Liberty Property Trust pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. Monmouth Real Estate Investment pays out 212.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Liberty Property Trust pays out 67.5% of its earnings in the form of a dividend. Monmouth Real Estate Investment has raised its dividend for 2 consecutive years and Liberty Property Trust has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

63.2% of Monmouth Real Estate Investment shares are held by institutional investors. Comparatively, 91.5% of Liberty Property Trust shares are held by institutional investors. 5.3% of Monmouth Real Estate Investment shares are held by insiders. Comparatively, 1.5% of Liberty Property Trust shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Liberty Property Trust beats Monmouth Real Estate Investment on 10 of the 16 factors compared between the two stocks.

About Monmouth Real Estate Investment

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 property portfolio consists of approximately 109 properties located across 30 states, containing a total of approximately 18.9 million rentable square feet.

About Liberty Property Trust

Liberty Property Trust (the Trust) is a self-administered and self-managed Maryland real estate investment trust (REIT). The Trust’s assets are owned directly or indirectly, and substantially all of the Trust’s operations are conducted directly or indirectly, by its subsidiary, Liberty Property Limited Partnership (the Operating Partnership). The Company’s segments include Carolinas/Richmond; Chicago/Milwaukee; Florida; Houston; Lehigh/Central PA; Minnesota; Philadelphia; Southeastern PA; United Kingdom, and Other, which includes Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; Southern California, and other. The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. As of December 31, 2016, the Company owned and operated 450 industrial and 55 office properties totaling 86.0 million square feet.

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