CubeSmart (NYSE:CUBE) and Clipper Realty (NYSE:CLPR) Head to Head Review

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

Analyst Ratings

This is a summary of current recommendations and price targets for CubeSmart and Clipper Realty, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CubeSmart	0	11	7	0	2.39
Clipper Realty	0	1	0	0	2.00

CubeSmart presently has a consensus target price of $45.25, suggesting a potential upside of 27.89%. Given CubeSmart’s stronger consensus rating and higher probable upside, equities analysts plainly believe CubeSmart is more favorable than Clipper Realty.

Risk & Volatility

CubeSmart has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Clipper Realty has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Earnings & Valuation

This table compares CubeSmart and Clipper Realty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CubeSmart	$929.08 million	8.68	$391.18 million	$1.56	22.68
Clipper Realty	$148.77 million	0.36	-$2.50 million	($1.12)	-3.00

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

Profitability

This table compares CubeSmart and Clipper Realty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CubeSmart	33.31%	12.49%	5.37%
Clipper Realty	-10.40%	N/A	-1.28%

Dividends

CubeSmart pays an annual dividend of $2.08 per share and has a dividend yield of 5.9%. Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 11.3%. CubeSmart pays out 133.3% 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 pays out -33.9% of its earnings in the form of a dividend. CubeSmart has raised its dividend for 16 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

97.6% of CubeSmart shares are owned by institutional investors. Comparatively, 37.6% of Clipper Realty shares are owned by institutional investors. 1.7% of CubeSmart shares are owned by insiders. Comparatively, 53.0% of Clipper Realty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

CubeSmart beats Clipper Realty on 14 of the 17 factors compared between the two stocks.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.

About Clipper Realty

Clipper Realty Inc. (NYSE: CLPR) is a self-administered and self-managed real estate company that acquires, owns, manages, operates, and repositions multifamily residential and commercial properties in the New York metropolitan area, with a portfolio in Manhattan and Brooklyn.