Clipper Realty (NYSE:CLPR) & NNN REIT (NYSE:NNN) Critical Survey

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

Analyst Ratings

This is a breakdown of current recommendations for Clipper Realty and NNN REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clipper Realty	0	1	0	0	2.00
NNN REIT	2	8	3	0	2.08

NNN REIT has a consensus target price of $45.65, indicating a potential downside of 3.94%. Given NNN REIT’s stronger consensus rating and higher probable upside, analysts clearly believe NNN REIT is more favorable than Clipper Realty.

Insider & Institutional Ownership

37.6% of Clipper Realty shares are held by institutional investors. Comparatively, 90.0% of NNN REIT shares are held by institutional investors. 54.6% of Clipper Realty shares are held by insiders. Comparatively, 0.9% of NNN REIT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Clipper Realty	-7.10%	N/A	-0.87%
NNN REIT	41.38%	8.81%	4.14%

Earnings & Valuation

This table compares Clipper Realty and NNN REIT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clipper Realty	$153.20 million	0.30	-$19.90 million	($0.81)	-3.54
NNN REIT	$926.21 million	9.76	$389.78 million	$2.06	23.07

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

Dividends

Clipper Realty pays an annual dividend of $0.38 per share and has a dividend yield of 13.3%. NNN REIT pays an annual dividend of $2.40 per share and has a dividend yield of 5.1%. Clipper Realty pays out -46.9% of its earnings in the form of a dividend. NNN REIT pays out 116.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. NNN REIT has raised its dividend for 35 consecutive years. Clipper Realty is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Clipper Realty has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, NNN REIT has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Summary

NNN REIT beats Clipper Realty on 13 of the 17 factors compared between the two stocks.

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.

About NNN REIT

NNN REIT invests primarily in high-quality retail properties subject generally to long-term, net leases. As of December 31, 2023, the company owned 3,532 properties in 49 states with a gross leasable area of approximately 36.0 million square feet and a weighted average remaining lease term of 10.1 years. NNN is one of only three publicly traded REITs to have increased annual dividends for 34 or more consecutive years.