Clipper Realty (CLPR) versus BRT Apartments (BRT) Head to Head Analysis

Clipper Realty (NYSE: CLPR) and BRT Apartments (NYSE:BRT) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 3.8%. BRT Apartments pays an annual dividend of $0.72 per share and has a dividend yield of 6.1%. Clipper Realty pays out -190.0% of its earnings in the form of a dividend. BRT Apartments pays out 73.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares Clipper Realty and BRT Apartments’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clipper Realty $93.00 million 1.91 -$3.73 million ($0.20) -49.80
BRT Apartments $105.77 million 1.57 $13.60 million $0.98 12.07

BRT Apartments has higher revenue and earnings than Clipper Realty. Clipper Realty is trading at a lower price-to-earnings ratio than BRT Apartments, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clipper Realty and BRT Apartments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clipper Realty -2.66% -0.74% -0.13%
BRT Apartments 12.86% 6.00% 1.47%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Clipper Realty and BRT Apartments, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 4 0 3.00
BRT Apartments 0 1 2 0 2.67

Clipper Realty currently has a consensus target price of $15.67, indicating a potential upside of 57.30%. BRT Apartments has a consensus target price of $11.58, indicating a potential downside of 2.09%. Given Clipper Realty’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Clipper Realty is more favorable than BRT Apartments.

Insider and Institutional Ownership

57.1% of Clipper Realty shares are held by institutional investors. Comparatively, 22.1% of BRT Apartments shares are held by institutional investors. 41.9% of BRT Apartments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

BRT Apartments beats Clipper Realty on 9 of the 15 factors compared between the two stocks.

Clipper Realty Company Profile

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.

BRT Apartments Company Profile

BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets.

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