Head to Head Comparison: Clipper Realty (CLPR) & Starwood Waypoint Homes (SFR)

Clipper Realty (NYSE: CLPR) and Starwood Waypoint Homes (NYSE:SFR) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, risk, valuation, earnings, profitability and institutional ownership.

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 4.7%. Starwood Waypoint Homes pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Clipper Realty pays out -190.0% of its earnings in the form of a dividend. Starwood Waypoint Homes pays out -314.3% 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.

Analyst Recommendations

This is a breakdown of current ratings for Clipper Realty and Starwood Waypoint Homes, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clipper Realty 0 0 4 0 3.00
Starwood Waypoint Homes 0 4 6 0 2.60

Clipper Realty presently has a consensus target price of $15.75, indicating a potential upside of 96.14%. Starwood Waypoint Homes has a consensus target price of $37.50, indicating a potential upside of 1.00%. Given Clipper Realty’s stronger consensus rating and higher possible upside, analysts plainly believe Clipper Realty is more favorable than Starwood Waypoint Homes.

Profitability

This table compares Clipper Realty and Starwood Waypoint Homes’ 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%
Starwood Waypoint Homes -13.10% -2.63% -1.19%

Insider and Institutional Ownership

56.9% of Clipper Realty shares are held by institutional investors. 5.0% of Starwood Waypoint Homes shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Clipper Realty and Starwood Waypoint Homes’ top-line 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 1.54 -$3.73 million ($0.20) -40.15
Starwood Waypoint Homes $575.68 million 8.28 -$81.26 million ($0.28) -132.61

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

Summary

Clipper Realty beats Starwood Waypoint Homes on 10 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.

Starwood Waypoint Homes Company Profile

Starwood Waypoint Homes, formerly Colony Starwood Homes, is an internally managed real estate investment trust (REIT). The Company was formed primarily to acquire, renovate, lease and manage residential assets in select markets across the United States. It is focused on acquiring single-family rental (SFR) homes through a variety of channels, renovating these homes to the extent necessary and leasing them to qualified residents. The Company operates through two segments, which are represented by its portfolio of SFR homes and its portfolio of NPLs owned in the joint venture with Prime Asset Fund VI, LLC (Prime). The Company identifies and pursues individual home acquisition opportunities through various sources, including multiple listing services (MLS) listings, foreclosure auctions and short sales. As of December 31, 2016, its SFR portfolio consisted of 31,684 owned homes, including 31,065 rental homes and 619 homes that it does not intend to hold for the long term.

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