American Assets Trust (NYSE: AAT) and Urstadt Biddle Properties (NYSE:UBA) are both small-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares American Assets Trust and Urstadt Biddle Properties’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Assets Trust 10.90% 3.97% 1.58%
Urstadt Biddle Properties 42.95% 13.19% 5.38%

Volatility and Risk

American Assets Trust has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Urstadt Biddle Properties has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.

Institutional and Insider Ownership

98.2% of American Assets Trust shares are held by institutional investors. Comparatively, 60.1% of Urstadt Biddle Properties shares are held by institutional investors. 34.2% of American Assets Trust shares are held by insiders. Comparatively, 20.1% of Urstadt Biddle Properties shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares American Assets Trust and Urstadt Biddle Properties’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Assets Trust $295.09 million 5.93 $45.63 million $0.67 55.40
Urstadt Biddle Properties $123.56 million 6.76 $52.93 million $0.88 24.10

Urstadt Biddle Properties has lower revenue, but higher earnings than American Assets Trust. Urstadt Biddle Properties is trading at a lower price-to-earnings ratio than American Assets Trust, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for American Assets Trust and Urstadt Biddle Properties, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Assets Trust 0 2 1 0 2.33
Urstadt Biddle Properties 0 3 0 0 2.00

American Assets Trust currently has a consensus price target of $43.67, indicating a potential upside of 17.64%. Urstadt Biddle Properties has a consensus price target of $21.50, indicating a potential upside of 1.37%. Given American Assets Trust’s stronger consensus rating and higher probable upside, equities research analysts clearly believe American Assets Trust is more favorable than Urstadt Biddle Properties.

Dividends

American Assets Trust pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Urstadt Biddle Properties pays an annual dividend of $1.06 per share and has a dividend yield of 5.0%. American Assets Trust pays out 161.2% 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 pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. American Assets Trust has increased its dividend for 17 consecutive years. Urstadt Biddle Properties is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Urstadt Biddle Properties beats American Assets Trust on 9 of the 17 factors compared between the two stocks.

About American Assets Trust

American Assets Trust, Inc. is a full service, vertically integrated and self-administered real estate investment trust (REIT). The Company owns, operates, acquires and develops retail, office, multifamily and mixed-use properties in Southern California, Northern California, Oregon, Washington, Texas and Hawaii markets. The Company operates in four business segments: retail, office, multifamily and mixed-use. As of December 31, 2016, the Company’s portfolio consisted of 11 retail shopping centers; seven office properties; a mixed-use property consisting of a 369-room all-suite hotel and a retail shopping center, and five multifamily properties. Additionally, as of December 31, 2016, the Company owned land at four of its properties that it classified as held for development and construction in progress. The Company’s markets include San Diego, the San Francisco Bay Area, Portland, Oregon, Bellevue, Washington and Oahu, Hawaii.

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.

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