Critical Contrast: American Realty Investors (NYSE:ARL) versus Gyrodyne (NASDAQ:GYRO)

American Realty Investors (NYSE:ARL) and Gyrodyne (NASDAQ:GYRO) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for American Realty Investors and Gyrodyne , as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Realty Investors	1	0	0	0	1.00
Gyrodyne	0	0	0	0	0.00

Insider and Institutional Ownership

71.4% of Gyrodyne shares are held by institutional investors. 90.8% of American Realty Investors shares are held by insiders. Comparatively, 12.1% of Gyrodyne 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.

Earnings & Valuation

This table compares American Realty Investors and Gyrodyne “s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Realty Investors	$50.01 million	4.80	$15.70 million	$0.76	19.56
Gyrodyne	N/A	N/A	N/A	N/A	N/A

American Realty Investors has higher revenue and earnings than Gyrodyne .

Profitability

This table compares American Realty Investors and Gyrodyne ‘s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Realty Investors	24.21%	0.10%	0.07%
Gyrodyne	N/A	N/A	N/A

Risk & Volatility

American Realty Investors has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Gyrodyne has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Summary

American Realty Investors beats Gyrodyne on 7 of the 8 factors compared between the two stocks.

About American Realty Investors

American Realty Investors, Inc., together with its subsidiaries, acquires, develops, owns, and manages multifamily and commercial real estate properties in the Southern United States. It operates through two segments, Residential and Commercial. The company leases apartment units to residents; and office, industrial, and retail space to various for-profit businesses, as well as local, state, and federal agencies. It also offers tenant services, including parking and storage space rental; and sells land and properties. The company was incorporated in 1999 and is based in Dallas, Texas. American Realty Investors, Inc. is a subsidiary of Realty Advisors, Inc.

About Gyrodyne

Gyrodyne, LLC owns and manages a diversified portfolio of real estate properties comprising office, industrial and service-oriented properties in the New York metropolitan area. Gyrodyne owns a 63 acre site approximately 50 miles east of New York City on the north shore of Long Island, which includes industrial and office buildings and undeveloped property which is the subject of plans to seek value-enhancing entitlements. Gyrodyne also owns a medical office park in Cortlandt Manor, New York which is also the subject of a subdivision application. Gyrodyne's common shares are traded on the NASDAQ Stock Market under the symbol GYRO.