UDR (UDR) vs. Clipper Realty (CLPR) Critical Survey
Clipper Realty (NYSE: CLPR) and UDR (NYSE:UDR) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Institutional and Insider Ownership
57.1% of Clipper Realty shares are held by institutional investors. Comparatively, 96.5% of UDR shares are held by institutional investors. 3.1% of UDR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Clipper Realty and UDR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 3.8%. UDR pays an annual dividend of $1.24 per share and has a dividend yield of 3.5%. Clipper Realty pays out -190.0% of its earnings in the form of a dividend. UDR pays out 117.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Clipper Realty has increased its dividend for 8 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of recent recommendations and price targets for Clipper Realty and UDR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Clipper Realty currently has a consensus target price of $15.67, indicating a potential upside of 56.20%. UDR has a consensus target price of $39.82, indicating a potential upside of 11.54%. Given Clipper Realty’s stronger consensus rating and higher probable upside, analysts plainly believe Clipper Realty is more favorable than UDR.
Valuation and Earnings
This table compares Clipper Realty and UDR’s 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||1.92||-$3.73 million||($0.20)||-50.15|
|UDR||$959.86 million||9.96||$292.71 million||$1.06||33.68|
UDR has higher revenue and earnings than Clipper Realty. Clipper Realty is trading at a lower price-to-earnings ratio than UDR, indicating that it is currently the more affordable of the two stocks.
UDR beats Clipper Realty on 10 of the 16 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.
UDR Company Profile
UDR, Inc. is a self-administered real estate investment trust. The Company owns, operates, acquires, renovates, develops, redevelops, disposes of and manages multifamily apartment communities generally located in various markets across the United States. The Company’s segments are Same-Store Communities and Non-Mature Communities/Other. As of December 31, 2016, the Company’s consolidated real estate portfolio included 127 communities located in 18 markets, with a total of 39,454 completed apartment homes. As of December 31, 2016, the Company also had an ownership interest in 27 communities containing 6,849 apartment homes through unconsolidated joint ventures or partnerships. As of December 31, 2016, the Company’s properties were in various locations, such as Orange County, San Francisco and Los Angeles in California; Seattle, Washington; Richmond, Virginia; Baltimore, Maryland; Orlando and Tampa in Florida; Nashville, Tennessee, and Dallas and Austin in Texas.
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