Columbia Property Trust (NYSE: CXP) and Seritage Growth Properties (NYSE:SRG) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, dividends, valuation, profitability, institutional ownership, earnings and analyst recommendations.
Institutional and Insider Ownership
67.4% of Columbia Property Trust shares are owned by institutional investors. Comparatively, 78.0% of Seritage Growth Properties shares are owned by institutional investors. 0.5% of Columbia Property Trust shares are owned by company insiders. Comparatively, 9.8% of Seritage Growth Properties shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Columbia Property Trust pays an annual dividend of $0.80 per share and has a dividend yield of 3.7%. Seritage Growth Properties pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Columbia Property Trust pays out 47.6% of its earnings in the form of a dividend. Seritage Growth Properties pays out -71.9% 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.
This table compares Columbia Property Trust and Seritage Growth Properties’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Property Trust||63.37%||8.10%||4.91%|
|Seritage Growth Properties||-17.97%||-3.33%||-1.67%|
Valuation & Earnings
This table compares Columbia Property Trust and Seritage Growth Properties’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Columbia Property Trust||$473.54 million||5.47||$84.28 million||$1.68||12.86|
|Seritage Growth Properties||$248.67 million||5.92||-$51.55 million||($1.39)||-29.95|
Columbia Property Trust has higher revenue and earnings than Seritage Growth Properties. Seritage Growth Properties is trading at a lower price-to-earnings ratio than Columbia Property Trust, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Columbia Property Trust has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Seritage Growth Properties has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Columbia Property Trust and Seritage Growth Properties, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Property Trust||0||2||5||0||2.71|
|Seritage Growth Properties||1||1||0||0||1.50|
Columbia Property Trust currently has a consensus price target of $24.17, suggesting a potential upside of 11.83%. Seritage Growth Properties has a consensus price target of $43.00, suggesting a potential upside of 3.29%. Given Columbia Property Trust’s stronger consensus rating and higher possible upside, equities analysts clearly believe Columbia Property Trust is more favorable than Seritage Growth Properties.
Columbia Property Trust beats Seritage Growth Properties on 12 of the 16 factors compared between the two stocks.
Columbia Property Trust Company Profile
Columbia Property Trust, Inc. operates as a real estate investment trust (REIT), which owns and operates commercial real estate properties. The Company’s primary objective is to generate long-term shareholder returns from a combination of steadily growing cash flows and appreciation in its net asset values, through the acquisition and ownership of office buildings located principally in high-barrier-to-entry markets. The Company’s segments include New York, San Francisco, Atlanta, Washington, D.C., Boston, Los Angeles and all other office markets. The all other office markets segment consists of properties in similar, low-barrier to entry geographic locations, in which the Company does not plan to make further investments. The Company conducts its business primarily through Columbia Property Trust Operating Partnership, L.P. (Columbia Property Trust OP), which acquires, develops, owns, leases and operates real properties directly through subsidiaries or through joint ventures.
Seritage Growth Properties Company Profile
Seritage Growth Properties (Seritage) is a self-administered and self-managed real estate investment trust. The Company is engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. Its assets are held by and its operations are primarily conducted through, directly or indirectly, Seritage Growth Properties, L.P. (Operating Partnership). As of December 31, 2016, the Company’s portfolio included approximately 42.2 million square feet of gross leasable area (GLA), consisting of 235 owned properties totaling over 36.8 million square feet of GLA across 49 states and Puerto Rico, and interests in 31 joint venture properties totaling over 5.4 million square feet of GLA across 17 states. As of December 31, 2016, it included over 3,000 acres of land or approximately 13 acres per site for its owned properties. Its properties are primarily located in areas, including in California, Florida and Texas.
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